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industry & government news

THE LEVY IS SEEN AS CRUCIAL SUPPORT FOR THE UK'S
LEGALLY BINDING 2050 NET ZERO EMISSIONS TARGET
GOVERNMENT TO FUND GREEN GAS PLANTS

WITH CO2 TAX ON GAS SUPPLIERS

PLANS TO LEVY a carbon tax on UK rural areas, according to the government, Executive of the Anaerobic Digestion
gas suppliers to fund the construction which is seeking views on how best to and Bioresources Association, estimated
of biomethane production plants to design and implement the initiative. the biomethane industry could deliver
decarbonise home heating have been Energy and Clean Growth Minister a six per cent reduction in the UK’s
launched for consultation by the Kwasi Kwarteng touted the levy as greenhouse gas emissions by 2030.
government. a crucial mechanism to support the “As biomethane is already compatible
BusinessGreen reports that the so- UK’s legally binding 2050 net zero with our current gas grid, it is also
called ‘Green Gas Levy’, first announced emissions target. a particularly cost-effective way
as part of the budget earlier this year, “Reaching net zero means reducing to decarbonise the UK’s heating
would be applied to gas suppliers emissions across our entire energy infrastructure,” she said. “We welcome
in Scotland, Wales and England in a system, including the way we heat this consultation and the commitment
bid to accelerate the decarbonisation our homes and businesses,” Kwarteng shown by BEIS to integrate biomethane
of heating, one of the UK’s most said. “This new funding will support an into the government’s net zero strategy.”
challenging sources of carbon emissions. ambitious scheme to decarbonise the David Smith, Chief Executive of
Funds collected through the levy gas grid that will prevent millions of the Energy Networks Association
would then be channelled into the tonnes of carbon dioxide from entering also gave the green gas levy plans a
government’s Green Gas Support the atmosphere – another step towards cautious welcome. “Biomethane has
Scheme, which is set to provide reaching net zero by 2050 at minimal a vital role to play in helping deliver
subsidies for renewable biomethane cost to UK bill payers.” the world’s first zero carbon gas grid
plants when it replaces the non- The new rule will see consumer gas here in the UK, working in close
domestic renewable heat incentive bills rise by around 11p per month, the partnership with hydrogen,” he said.
(RHI) in March next year. Department for Business, Energy and “Proposals for a higher and broader
As well as contributing to a reduction Industrial Strategy (BEIS) estimates. level of support are welcome, but they
in the nation’s carbon emissions, the Industry groups broadly commended need to be more ambitious and also
construction of new biomethane plants the government’s decision to progress its take into account how biomethane
can create jobs and spur investment in plans for the levy. Charlotte Morton, Chief will fit into the wider system.”

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15/10/2020 11:09
News.indd 2
News.indd 2 15/10/2020 11:09