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NETWORK / 24 / NOVEMBER 2018 ROUNDTABLE T he first output from the Catapult's pro- ject was published in May 2018 and was an analysis of the current pattern of 'effective carbon prices' in the UK for decarbonisation in different economic sectors and activities. This showed a range of "effective carbon prices" with a number of areas that still ap - pear "under taxed", including coal and gas-based generation and energy consumption in homes and businesses. From this baseline leading industry figures took part in a roundtable discussion at the Department of Business, Energy and Industrial Strategy (BEIS). The discussion focused on three topics: l Implications of the current pattern of 'effective carbon prices' for energy and eco- nomic policy, including the Industrial Strategy, innovation and the Clean Growth Plan. l What can we learn from the approach of other countries to carbon pricing and incentives for decarbonisation? l How far can the UK go in mov- ing towards a more coherent set of carbon price signals or incentives? The first part of the Catapult's work highlights some quite sig- nificant variation in the effective carbon prices across different Capturing carbon The Energy Systems Catapult's 'Rethinking decarbonisation incentives' project is taking a fresh look at how the UK could reform policies to promote clean growth and efficient economy-wide decarbonisation over the long term. Last month leading industry voices took part in a roundtable discussion hosted by Network and the Catapult to discuss the different sector drivers, and future options for policy reform. Adam John was there. parts of the economy. Partici- pants were asked to discuss how important this was and how significant it was for getting the right technology mix to decar - bonise the economy and deliver the Clean Growth Strategy. One participant said whether transport fuel duty is called a carbon price or not, it is working as a carbon price in that electric vehicles (EVs) have become cost competitive on a whole cost of ownership basis. They added that the UK was "at a precipice" where EVs are going to take off "largely because of this effective carbon price on fuel". Brexit was another theme that was discussed. With the UK's impending departure from the European Union, participants were asked to consider whether Brexit would open up any specific opportunities to improve the current picture. not believe any country had a model they could "pick off the shelf " and follow as an example for the UK. One cited South Africa as an example of where policy was "watered down" in order to ap - pease different sectors. The third and final discus- sion point for the a™ernoon was about what the opportunities are for the UK to improve carbon policy now. The Catapult says it recog - nises how difficult it is to do far-reaching, radical reforms but that people should be thinking about how to move from where the UK is now, to something which offers a more durable, economy-wide framework for incentivising decarbonisation. Five stylised reform options were mooted as a basis of discussion: l Aligning sectoral policies for carbon One participant said they believed there are areas of EU policy that are not particularly well-designed, with one of them being the common agricultural policy (CAP). "Through the CAP we are subsidising forms of ag - riculture which are environmen- tally damaging", they said. As well as looking at what the implications of 'effective carbon prices' in the UK are, the discussion explored what can be learned from the approach of other countries to carbon pricing and the incentives for decarbonisation. The Catapult has produced a set of 11 case studies of carbon policy and tried to select exam - ples that exemplified lessons to the UK experience. Examples include a range of policy ap- proaches such as standards, subsidies, tradeable certificates and interacting suites of policies. One participant said they did