Plans to levy a carbon tax on UK gas suppliers in order to fund the construction of biomethane ‘green gas’ production plants that can decarbonise home heating have been launched for consultation by the government today. The so-called ‘Green Gas Levy’, first announced as part of the Budget earlier this year, would be applied to gas suppliers in Scotland, Wales and England in a bid to accelerate the decarbonisation of heating, one of the UK’s most challenging sources of carbon emissions. Funds collected through the levy would then be channelled into the government’s Green Gas Support Scheme, which is set to provide subsidies for renewable biomethane plants when it replaces the non-domestic renewable heat incentive (RHI) in March next year. As well as contributing to a reduction in the nation’s carbon emissions, the construction of new biomethane plants can create jobs and spur investment in rural areas, according to the government, which is seeking views on how best to design and implement the initiative. Energy and Clean Growth Minister Kwasi Kwarteng touted the levy as an crucial mechanism to support UK’s legally-binding 2050 net zero emissions target.
Business Green 22nd Sept 2020 read more »