Howard Chapman

UK renewables opportunity after Paris climate agreement

  • 15 Dec 2015

In the light of the UK’s commitment to do more to promote cleaner energy and sustainable buildings, the proposed renewables VAT price hike should be challenged.

Paris climate agreementWe all welcome the global climate deal struck in Paris over the weekend. 195 countries signed up to a deal to reduce greenhouse gas emissions from the current 46bn tons a year to almost zero within 50 years.

The target is to limit global warming to well below a 2 degree rise.

Carolyn Fairbairn, CBI director-general, commented: “The UK government must provide a stable environment that enables investment in cleaner, more affordable and more secure energy generation, including renewable technologies and new gas plants.”

However, actions speak louder than rhetoric.

It is disappointing that UK Government has launched consultation proposing VAT tax increase for rooftop solar panels and wind turbines to comply with EU law. This would mean a 15% VAT hike for domestic solar panels and other renewable energy products.

The Paris climate agreement is a great opportunity for the UK to lead the way in renewable energy and in the developing sustainable buildings. So let’s start by having more support for the UK Government to continue to withstand the EU on these VAT rises.

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