Some seasonal cheer

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After doling out a whole heap of grief to the Government this year I'm glad to report a positive step forward today. According to the Guardian, ministers will be required to attach a "carbon price" to all future decisions. Apparently a shadow price for carbon has been set for every year from now to 2050. It will be set at £25.50 a carbon tonne for 2007, rising every year to £59.60 a tonne by the middle of the century and will cover investment in transport,construction, housing, planning and energy.
 

The notional example given by climate change minister Phil Woolas is building a new power station - the typical cost is £1bn but the carbon cost will add £200m to the price-tag - I'm not sure whether this money is just theory, paper cash or whether this added price will be ploughed back into renewables development or reducing emissions. "We are creating a new currency," says Woolas.
The key is where this policy appears to be coming from - the Treasury. Later on in the report it says the shadow price is partly drawn from new modelling on the scale of the threat of climate change and partly by economic work undertaken by McKinseys and the Stern review on behalf of the Treasury. This could give real teeth, co-ordination and direction to such a proposal, compared to piecemeal policy that has driven Whitehall's response to climate change up to now.