Over the past 8 months, Coronavirus has caused havoc for the global economy. It’s forced many businesses to temporally close down, which has lead to record unemployment numbers. In order to combat this, the government has introduced a furlough scheme and given financial support businesses to keep them afloat. However, this has come at a large cost to the government’s budget and therefore, Rishi Sunak has a plan to recoup some of these costs – A Carbon Emissions Tax.
Not only would this help raise billions of pounds in revenue for the government in the form of tax collection, but this would simultaneously also encourage the drive towards net-zero emissions by 2050.
Reports indicate that a carbon tax of £75 per tonne of CO₂ emitted by 2030 charged on greenhouse gas producers could raise £27 billion. This would help to fund the post-covid economic recovery and incentivise the use of clean energy across the nation.
What does this mean for businesses?
A tax on carbon emissions could replace the existing EU carbon reduction schemes when the transition period finishes at the end of 2020. Currently, the UK is part of the EU’s emissions trading scheme (ETS) in which companies can buy or sell emission allowances. However, the government is leaning towards a tax emission allowance that could fall over time, leaving companies to be charged for every tonne of carbon produced over the threshold.
However, by investing in a renewable energy system, your business could avoid the carbon emissions tax. We can work with you to design your business a bespoke system that suits your specific needs. Given the public’s perception and government incentives, having a carbon reduction strategy in place has become a major priority for businesses around the world. Whether that comes in the form of solar panels on your roof, the creation of an energy battery storage system or the installation electric vehicle points on your premises – we are here for you.
Ultimately, it is down to us to make the change towards sustainability in order to create a greener future. Now is a good time to assess your net zero aspirations and talk to us about how we can help achieve them. Our team of renewable energy experts are available to provide Net Zero consultancy and renewable (Solar, EV, battery) quotations alongside installation operations and maintenance support to asset owners.