Green issues: ‘government opts for environmentally unfriendly option’
Matthew Hodkin comments on the Budget and green issues
There were two main changes in the Budget relating to environmental taxes: one of which had been previously announced, and the other of which was widely expected. These relate to the climate change levy (CCL) and carbon price floor (CPF).
The decision to create an exemption from the main rate of CCL for certain metallurgical and mineralogical processes is aimed at assisting those businesses which are energy-intensive but important for the growth in the economy that the chancellor wishes to see.
The freeze in the level of the carbon price floor until 2020 means that electricity bills are likely to be lower all round, but at the expense of non-polluting forms of energy.
It appears that the government, caught between political disquiet over domestic electricity bills, a need to ensure the energy-intensive manufacturing sector is not at a competitive disadvantage and a desire to reduce carbon emissions, has opted for the environmentally-unfriendly option.
Home >Articles > Green issues: ‘government opts for environmentally unfriendly option’
Green issues: ‘government opts for environmentally unfriendly option’
Matthew Hodkin comments on the Budget and green issues
There were two main changes in the Budget relating to environmental taxes: one of which had been previously announced, and the other of which was widely expected. These relate to the climate change levy (CCL) and carbon price floor (CPF).
The decision to create an exemption from the main rate of CCL for certain metallurgical and mineralogical processes is aimed at assisting those businesses which are energy-intensive but important for the growth in the economy that the chancellor wishes to see.
The freeze in the level of the carbon price floor until 2020 means that electricity bills are likely to be lower all round, but at the expense of non-polluting forms of energy.
It appears that the government, caught between political disquiet over domestic electricity bills, a need to ensure the energy-intensive manufacturing sector is not at a competitive disadvantage and a desire to reduce carbon emissions, has opted for the environmentally-unfriendly option.
