On 24 March 2010, the Chancellor of the Exchequer handed down his 2010 Budget. The Budget has received a muted reaction from the markets, however it contains some significant environmental measures of wider interest.
As well as the announcement that there will be a new Green Investment Bank, significant measures include:
- EU Emissions Trading Scheme: nitrous oxide gases from nitric acid production will be included from 2011;
- new rates for Landfill tax, the Aggregates Levy and the Climate Change Levy;
- VAT reverse charge for emissions allowances and changes to rules on supply of gas, heat and cooling;
- capital allowances: changes to treatment of plant and machinery, cushion gas and energy and water efficient equipment;
- Renewables Obligation / bio-mass: the Government intends to grandfather a minimum level of support under the Renewables Obligation for biomass installations at the point of accreditation; and
- zero emission goods vehicles: 100% first year allowances.
In the briefing available here, we highlight these specific Budget measures and draw attention to practical issues and considerations to which clients should have regard. Further comment on the Energy Market Assessment released with the Budget, including discussion of additional measures to support low carbon generation can be found here.
A fuller briefing on the Green Investment Bank proposals will follow.