With a British general election now just weeks away (probably in early May according to most election observers), the major parties are beginning to expand on their campaign proposals. On Friday, the U.K. Conservative Party, under the leadership of David Cameron (in the picture), announced that it will enact legislation -- if elected to govern -- establishing a floor on the price of carbon in the energy sector.
A Conservative Government would implement "revenue neutral" legislation providing "incentives primarily for future generating capacity rather than [penalizing] existing capacity." The legislation would be put in place for 25 years so as to match the life of all but the longest investments in [electricity] capacity."
The policy is set out in "Rebuilding Security: Conservative energy policy for an uncertain world," which was released last Friday.
The Conservatives' energy proposal is particularly interesting since they are likely to form the next British Government. The Labour Party, which has governed since 1997, is seen as widely unpopular at this point. The fact that the Conservatives have taken the lead, in a sense, in the energy debate is one indication of how far Labour has fallen.