Carbon price floor – The Government announced a floor price for carbon in the power sector from 01 April 2013 to target a price for carbon of £30 per tonne of carbon dioxide in 2020. The floor will start at around £16 per tonne of carbon dioxide.
Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) Allowances will be priced at £12 per tonne of carbon dioxide. The Government will publish draft regulations to implement allowance sales later in 2011.
Businesses purchasing designated plant and machinery which is energy saving, reduces water use or improves the quality of water are eligible for 100% capital allowances.
Further tax breaks introduced for low emission vehicles. Tax on zero emission cars will remain at 0%.
The Government intends to introduce relief for carbon capture and storage and combined heat and power (CHP), and remove an existing exemption in the Climate Change Levy for electricity CHP plants supply indirectly to an energy consumer.
Previously eligible solar and wind projects will now be excluded from the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) from April 2012.
Announcements were made on the Renewable Heat Incentive tariffs which were released by DECC the previous week.
21 Enterprise Zones will be announced, with areas in Birmingham, Leeds and Bristol to be included. These will benefit from enhanced capital allowances, faster broadband connections, fewer planning restrictions and rates discounts.
Planning costs and requirements will be simplified to encourage investment and the provision of new jobs.