HISTORIC PRESS RELEASE : Government promotes Green action with two challenges to industry [July 2001]
The press release issued by HM Treasury on 25 July 2001.
The first stage of the Green Technology Challenge to offer tax relief to businesses investing in environmentally friendly technologies was today launched by Financial Secretary Paul Boateng.
Following the announcements made in this year’s Budget about reductions in fuel duty for greener fuels, the Government is also inviting further proposals for pilot projects under the Green Fuel Challenge.
The Green Technology Challenge
Many environmental improvements by businesses require investment in technology. In recognition of this and in line with its aim to protect the environment, the Government today published a consultation document inviting businesses and environmental groups to suggest specific environmental objectives, together with technologies to help achieve these, that should be considered for enhanced capital allowances.
The Government has already introduced enhanced capital allowances for energy-efficient investments, helping businesses to directly reduce their energy use, as part of the package of measures made available alongside the climate change levy, and the consultation document launched today builds on this.
The Green Fuel Challenge
The Green Fuel Challenge aims to help and encourage industry to develop practical alternative environmentally-friendly fuels. Building on the reductions in duty rates for road fuel gases announced in the Budget, the Government is now inviting applications from those seeking exemptions or reductions from excise duty so that pilot projects can be established to assess the benefits of new, greener fuels such as hydrogen, methanol, bioethanol and biogas.
Together, these initiatives represent an important response by the Government to work with business to help them tackle, and reduce, the environmental challenges facing modern society.
Financial Secretary Paul Boateng said:
“As the Prime Minister said in his speech to World Wildlife Fund Confederation earlier this year, the interests of business, technology and environmental protection go hand-in-hand.
The Green Technology Challenge aims to encourage, promote and reward green action and facilitate the diffusion of new technologies. It is not just about making the most of the best technologies available today, but about helping industry to develop the next generation of environmentally friendly technologies.
Allied closely to the GTC, the Green Fuel Challenge builds on the shift to greener fuels encouraged by this Government. Virtually all of the petrol market is now taken by ultra-low sulphur petrol thanks to our policy of duty incentives, and there is a growing market for road fuel gases, again encouraged by duty differentials and helped by companies such as Safeway which are converting their lorry fleets and providing real local air quality benefits as a result. The prospect of securing the environmental benefits of a further move towards greener fuels is very exciting, and the Government is ready and eager to help accelerate that process.
I am delighted today to launch our invitation to business and environmental groups to participate in these Green Challenges. I strongly encourage all those with innovative ideas in this area to come back to us with imaginative proposals.”
