Tax reforms must not compromise cost-effective carbon savings

In the budget statement published today the Chancellor made a point of repeating the Prime Minsters’ pledge to make this the greenest government ever.

Responding to today’s statement, Graham Meeks, Director of the CHPA, called for clarity over proposals to reform the Climate Change Levy:

“We welcome today’s Budget statement and the Chancellor’s commitment to provide greater certainty, in particular in relation to its proposals for reform of the Climate Change Levy. Exemptions from the Levy have been instrumental in supporting the supply of low carbon heat and power from CHP plant, saving millions of tonnes of CO2 each year.

“The CHP industry is poised to deliver a major contribution towards the CO2 cuts that Government is looking for from its own buildings and operations, and can play a major role in boosting the competitiveness of UK manufacturing as we emerge from recession. But without the value that these CCL exemptions provide, there is a real risk that development of CHP in the UK could go into reverse. It is vital that the Government gives early certainty that the value of these incentives is retained.

“This Government has made it clear that wants to be the greenest government ever. It must take care to ensure that its efforts to reform the taxation regime do not undermine the market for CHP, which is one of the most cost-effective means of delivering this goal.”

- Ends -