Starting from 2013 the farmers, householders and the entrepreneurs in heavy industry will have to pay a so called green tax, that is supposed to encourage new wind farms and nuclear power plants. No matter how noble the initiative is, the experts warn that it could result in bringing scores of households into fuel poverty and still do nothing for the reduction of emissions.
Some also fear that the implementation of the green tax may push the running costs of carbon floor price beyond the prices in Europe and the Far East, which could put a threat on jobs as well as hamper the investment in the regional steel industry.
The introduction of the tax however, has some positive aspects too: it is intended to boost the investment in low-carbon energy and gather a substantial amount of funds for the Treasury.
Nowadays, the energy companies are obliged to generate a specific amount of green energy every year or, if they are not capable of doing so, buy some permits to pollute on the open market. The new tax is intended to kick in when the cost of these permits falls too low. With the advent of 2013, the floor price of a permit that will be needed to emit a tone of carbon is going to be set at £16 and by 2020 it will be doubled. Presumably, the rise in costs is going to have an adverse effect on big industrial companies, chemical companies and steel industry, not to mention the householders.
The Institute for Public Policy Research (IPPR) estimates that 30,000 to 60,000 more households are likely to be brought down into fuel poverty, which is defined as spending more than 10 per cent of your disposable income on heat and light. The institute’s analysts have also made a point that because such scheme is going to exist only in Britain, the extra costs will drive permits and carbon emissions offshore.
Written by the team of Mascus.com. Visit them online to find used machinery and equipment for sale.