Green Gas Levy - what is it and how will it impact my business?

As a business you may be left confused and unsure on the measures in which the Government is putting in place to tackle climate change and the impact that this might have on not only how you operate but on and your utility bills too.

On 11th March, Rishi Sunak announced the budget for 2020, although somewhat overshadowed by the Coronavirus outbreak, there was clear indication as to where the Government stands on climate change. In the budget, it was announced that by 2050, the UK must have reached Net Zero.

‘Net Zero’ refers to achieving an overall balance between emissions being produced into the atmosphere and emissions taken out of the atmosphere. In order to reach Net Zero, they have identified that significant growth of low carbon heat across the UK is needed. The Department for Business, Energy and Industrial Strategy (BEIS) has proposed a Green Gas Support Scheme, providing support for injecting biomethane (green gas) into the grid, and a Clean Heat Grant Scheme, offering grants of up to £4,000 to encourage uptake of heat pump installation.

In order to help facilitate these schemes, the Government is introducing a Green Gas Levy tax. The levy which will be on energy suppliers and therefore passed down to consumer bills, will support the production of green gas from food waste and other biomass. On 22 September BEIS published a consultation on proposals for a Green Gas Levy, and this is expected to launch in autumn 2021 with the first levy payment from suppliers being collected in April 2022.

The consultation closed on 2 November, however full details of how this will work are yet to be disclosed.

CNG’s primary business is the shipping and supply of natural gas and although this is the cleanest of fossil fuels, we recognise that in order to help reverse climate change the creation of a carbon free future for energy is essential.

Our transition to renewable energy began in 2017 with the supply of green gas from 100% renewable UK sources, as an alternative option to customers. Our renewable strategy aligns with the UN’s Sustainable Development Goals (SDGs); Climate Action, Affordable and clean energy and Responsible consumption and production.

Although it is unclear what the full impact of a Green Gas Levy will have on customers, we cannot ignore the responsibility we have as businesses to do our part to help facilitate a cleaner and greener future. Therefore CNG will certainly look to support businesses who are already voluntarily choosing green gas and therefore begun their commitment to hitting Net Zero.

If you would like to speak to us about our green gas offering and the options available to your business, please give us a call on 01423 502554.