Whilst all of us will leave our places of work this evening with the usual plethora of thoughts spinning around our heads, we should all spare a little time to reflect on the Chancellor’s words today. Standing at the dispatch box to deliver his first budget, Rishi Sunak profoundly said “There can be no lasting prosperity for people if we do not protect our planet.’’ A truer statement could not be made today and it remains incumbent on ALL of us to heed Rishi’s words and ‘do our bit’.

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In the notice of the fact that emissions from the UK’s electricity sector have been declining for a decade, Sunak vowed to alter the Climate Change Levy by April 2022. Gas producers pay less than electricity producers, even though gas has demonstrated harder to decarbonise. The Treasury will introduce opportunities for clean electricity producers and additional taxation on gas producers. The government is increasing the rate on gas to £0.00568/kWh in 2022-23 and to £0.00672/kWh in 2023-24 whilst freezing the rates on electricity.

Energy-intensive sectors will be equipped with dedicated provision to help them deal with the implications of these developments, Sunak said. The Carbon Price Support will continue to operate at £18 per tonne of CO2 up to 2022. After the Brexit transition period, the UK will aim to implement an “ambitious carbon price” that could be linked to the EU Emissions Trading System.

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