Energy efficiency at risk from tax review

11th November 2013


Cameron

Related Topics

Related tags

  • Business & Industry ,
  • Procurement ,
  • Energy ,
  • Mitigation

Author

IEMA

The prime minister has announced plans to review environment "levies" as a way rein in rising energy bills, but it is unclear which charges will come under scrutiny

Confusion has been caused because energy minister Michael Fallon has disputed Decc’s confirmation that support for renewables would not be part of the appraisal.

In a statement, the energy department had confirmed: “No one is talking about changing investment incentives for renewables, such as the renewables obligation and feed-in tariffs, which are essential for investor confidence in the renewables sector.”

However, Fallon, appearing before the environmental audit committee, said that all levies would be under the microscope.

The confusion follows David Cameron’s statement to parliament that government needed to “roll back” some of the green regulations and charges that are putting up bills”.

Businesses operating in the built environment have warned the government not to scale back levies on energy bills that support energy efficiency. A letter to the prime minister from chief executives at a number of firms, including E.ON, Carillion and Willmott Dixon, argues that energy efficiency is the “only sure way” to protect against rising bills in the long term.

The warning follows evidence that it is difficult for companies to access finance to invest in energy efficiency.

In a poll of more than 300 energy specialists across the UK, conducted by Siemens Industry and the Energy Institute, 88% said that banks were either not interested in supporting investment in energy-saving technologies or provided “little feedback”. Just one respondent reported having actually received finance for an energy-efficiency initiative.

Higher capital allowances for firms wanting to invest in energy-efficient equipment and the creation of the Green Investment Bank were positive moves, commented Stephen Barker, head of energy efficiency at Siemens. “But the effectiveness of these measures is limited as there is a critical gap in the actual delivery of finance,” he argued.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

Multinational corporations are undermining their net-zero commitments with excessive air travel and no plans to reduce ‘the low hanging fruit’ of carbon footprints, a study by Transport & Environment has found.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

Large businesses across the world are avoiding climate action due to fear they will be called out for getting their work wrong, according to a new Carbon Trust report.

29th February 2024

Read more

A thought-provoking discussion on how storytelling can change the world took place in Central London last night, alongside an exclusive sneak preview of an upcoming IEMA film series.

29th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close