The budget in June revealed that by the end of autumn the government will propose to reform the climate change levy in order to support and clarify the carbon price. The government is aiming to put in place a ‘green deal’ and encouraging people to invest in energy efficiency improvements that can be paid for themselves from savings made in energy bills.
There will also be possible changes to aviation taxes which includes a move from a per-passenger to a per-plane duty, possibly helping to create fuller planes.
From 2011 in the EU Emissions Trading System the government will include nitrous oxide gases and cut the discount from the climate change levy for those industries participating in a climate change agreement from 80% to 65% in April 2011 and increase the levy in line with inflation.
However an unprecedented closure of the Low Carbon Building Programme in May due to the government’s cuts programme has seen commitments made for new projects in the pipeline.
