To ask the Chancellor of the Exchequer pursuant to the answer of 7 May 2009, Official Report, column 418-9W, on the EU Emissions Trading Scheme, what forecast he has made of the price of carbon in the (a) second and (b) third phases of the scheme; and if he will make a statement. (291495)

The prevailing market price of carbon is used to forecast auctioning revenues from Phase II of the EU Emissions Trading Scheme.

Longer term forecasts for Phase III are based on the Department for Energy and Climate Change estimates of the traded price of carbon in the EU Emissions Trading Scheme up to 2050, which are set out in “Carbon Valuation in UK Policy Appraisal: A Revised Approach”.