UK Consults on Green Levy for Gas

The UK government is planning to slap a levy on gas suppliers in Great Britain to encourage biomethane production and so help to decarbonise the grid, it said September 22. 

The measure could prevent 21.6mn metric tons of CO2 from entering the atmosphere by scaling up biomethane to heat around 230,000 homes. Biomethane is produced from environmentally-friendly organic waste products including farmyard waste. The Department for Business, Energy and Industrial Strategy said that using more of this gas would help "protect the environment without hitting consumers’ pockets," although it also said that it would have a "minimal cost."

The levy was first announced in the 2020 Budget earlier this year, and the consultation invites views on how the final initiative will be designed and implemented. It is intended to bring investment and jobs into the countryside, such as through the construction of biomethane plants.

Biomethane, which is compatible with grid specifications, could deliver a 6% reduction in the UK's greenhouse gas emissions by 2030, according to the Anaerobic Digestion & Bioresources Association. "With the right policy support, there is much more this industry could contribute to the green economy and to achieving the UK's fifht carbon budget, over the next decade, but this represents a significant step in the right direction," it said.

Northern Ireland has its own authority determining some aspects of energy policy.