UK energy prices are set to rise by a fifth when the European Union makes carbon trading schemes a legal requirement, it has been claimed.
According to Inenco, one of Britain's foremost energy analysts, energy prices will rise by double the amount the government forecasts.
Under the EU's carbon trading scheme, firms will be forced to bid for extra carbon dioxide permits if they exceed their capped limit.
Ian Parrett, energy analyst at Inenco, told the Daily Telegraph: "The key issue is that price-based measures tend to affect the least well-off the hardest."
"We need to make sure that the costs aren't just borne by those who have no alternative," he added.
The UK government plans to cut carbon emissions by 80 per cent before 2050.
Last year, energy and climate change secretary Ed Miliband said that tough economic conditions were not an excuse for government and industry to renege on environmental targets.
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