Government seeks proposals for green gas levy

The government has launched a consultation to scale up green gas and reduce emissions from the gas grid.

On 22 September, BEIS explained that it was seeking views on policy options for the Green Gas Levy, which will fund support for biomethane injection into the gas grid, potentially preventing as much as 21.6mn tonnes of CO2 from entering the atmosphere. The levy, which will be applied to suppliers in Scotland, Wales and England will result in minimal costs for consumers – starting at 11p per month – in return for a climate gains equivalent of planting over 71mn trees.

The levy is also set to play a key role in supporting a UK-wide green economic recovery, with the government outlining how, by funding the Green Gas Support Scheme, it will bring investment into rural areas of Britain and support jobs in the sector.

Within the consultation, the government is seeking views on areas including the design, budget control and financial management of the levy; an explanation of the anticipated impact on gas bills for domestic and non-domestic customers; the administration, compliance and enforcement of the scheme; and how payments will be made on the Green Gas Support Scheme ahead of the first levy collection. The consultation will close at 11:45PM on 2 November 2020.