The Climate Change Levy, first introduced in 2001 to reduce carbon emissions, has since its inception included a tax exemption for renewable energy sources. However, according to the new budget, announced this week, the exemption is set to end, causing uproar for many sustainable energy organisations and campaigners.
The budget states that the changes will occur from 1st August 2015 and are designed to stop taxpayers’ money from benefitting companies producing renewable energy abroad.
Chancellor George Osborne said, “Now we have a long term framework for investment in renewable energy in place, we will remove the outdated Climate Change Levy exemption for renewable electricity that has seen taxpayer money benefiting electricity generation abroad.”
However, dozens of organisations including Greenpeace, RenewableUK and the Renewable Energy Association have stated their position, criticising it as yet another attack on renewables created to take money out of clean energy projects and put it straight into the Treasury, which is set to make £450 million in the next fiscal year, and £910 million by 2121.
The Renewable Energy Association in particular has asked the government to reconsider, offering that the industry will work with them to stamp out the problems associated with foreign generators.
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