UK Carbon Tax will "Create a Divide" Between Companies

ENERGY efficiency industry expert claims the UK government goes "far beyond" expectations, warning investors can "no longer afford to ignore" carbon efficiency according to the Financial Times (FT).

The FT reports that Ralph Pettengell, chief of executive of Carbon Footprint Investments, claims that the proposal of a 50 per cent cut in carbon emissions by 2025 from the UK government, will "create a divide" between carbon efficient and carbon inefficient companies.

As we reported on these pages last week, Chris Huhne, UK Energy Secretary, revealed that the UK government is to sign up to a target for a 50 percent cut in carbon emissions by 2025, all part of the fourth carbon budget, running from 2023 to 2027.

Pettengell tols the FT: "Investors - whether they are pension funds, IFAs and employment benefit consultants acting on behalf of clients or private investors - can no longer afford to ignore the significant impact this move will have on energy costs for companies and in particular for high carbon emitters."

Around 4000 companies will start to pay the carbon tax, introduced under the CRC Energy Efficiency Scheme, from April 2012, which will set to polarise between carbon efficient companies and their carbon inefficient peers.

Pettengell added: "This latest move cracks that divide wide open."

He also told the FT that as the CRC scheme is expanded, involving evermore companies in the UK, a businesses carbon emissions and any carbon tax it will have to pay will increasingly impact its profitability along with its dividend payments and share price.

Pettengell concluded by saying: "Investors must now look at where they are invested and seek investment funds that are focused on this issue and have a strategy of increasing investments into companies that are either carbon efficient or moving that way."

Picture Birds circling over Canary Wharf © Copyright Ian Dalgliesh and licensed for reuse under this Creative Commons Licence.

Monday 23rd May 2011

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Just can't understand one thing that how come the UK Carbon Tax will "Create a Divide" in between the companies, I guess they will get benefits more or less to themselves but the thing is they could always use the turbo tax coupon and can take other initiatives to save more money and get deductions more.

Commented By Cheryl Walden on Monday 25th November 2013 11:06:10