Mr. Robert Watt:

We are in the process of revising the guidelines setting out the per-unit price of carbon to be used as a shadow price when it comes to investment decisions. Our draft consultation paper is out there for discussion and we have set out the price we think it should be in the future.

It will incentivise projects that have significant abatement potential and discourage investments that lead to higher emissions. That is the main way by means of which we will influence decisions over time. When Departments are making decisions about investment, they will reflect a higher price for carbon.

In terms of cross-departmental spending, a variety of spending initiatives are assigned to different Departments. Some Departments work together in a collaborative sense but individual Departments have responsibility for their programmes and within that there are elements that are related to climate. In the context of the carbon budget, we pull together the different strands of spending related to carbon as we set out the measures. It is about public transport, energy efficiency and retrofitting and all the standard type of options and measures relating to the ETS scheme with regard to supports for renewables and so on. There are a variety of initiatives.