|Infographic on KPMG green tax index.|
By guest contributor Victoria Lynskey
KPMG has recently compiled a report into how countries use tax incentives in order to persuade both businesses and consumers alike to embrace sustainable energy.
The KPMG Green Tax Index has been created to raise awareness of sustainable energy in the corporate world, and the incentives and penalties that are in place to persuade energy consumers to take on renewable sources of energy. The UK was found to have a balanced approach to green tax incentives and penalties, scoring most highly in the areas of carbon emissions and climate change.
The UK government has a number of schemes to help combat climate change and bring renewable energy into the mainstream. For example, the UK has introduced Feed-In-Tariffs, which allow consumers and businesses to gain money for the electricity they generate whether they use it for themselves or feed it into the grid.
Another incentive for businesses in the UK to reduce their energy usage is the Climate Change Levy, or CCL. This levy taxes the supply of specified energy products for use as fuels for a range of uses. This includes electricity, gas, oil and coal. The rates change in line with RPI each year. The goal is to persuade businesses to change the way in which they use or even generate power.
The Renewable Heat Incentive was also launched in 2011, recently extended to March next year, and provides non-domestic users with an incentive to generate and use renewable energy to heat their buildings.
All of these incentives are designed to help the UK meet their climate change targets, including reducing greenhouse gas emissions by 80% by 2050, the plans for which were set out in 2011.
Business energy is a big part of the energy sector in the UK, and as such it is important to find ways to reduce the carbon footprint of companies operating in the UK if we are to meet our climate change targets.
Indigo Swan is a Business Energy Consultancy, helping empower businesses to find the best deal on their energy supply.