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Carbon Emissions

Volume 487: debated on Tuesday 10 February 2009

To ask the Chancellor of the Exchequer what his definition of the low-carbon sector is as referred to in the pre-Budget report 2008. (255081)

We have used the definition from the forthcoming independent study by Innovas, commissioned by BERR, which includes:

Renewable energy, such as:


Wave and Tidal;




Renewable Consulting;


And emerging low carbon technologies and activities, such as:

Alternative Fuel Vehicles;

Alternative Fuels;

Additional Energy sources;

Carbon Capture and Storage;

Carbon Finance;

Energy Management;

Building Technologies.

To ask the Chancellor of the Exchequer what fiscal incentives are available for the research and development of low-carbon technologies. (255082)

The Government provide a range of tax incentives to encourage the adoption of new energy technologies:

Exemption from the climate change levy for supplies of electricity generated from certain renewable sources;

Enhanced capital allowances (ECAs) for energy efficient equipment provide 100 per cent. first year allowances for spending on designated energy-saving technologies and products;

Stamp duty exemption for new zero-carbon homes;

Reduced rate of VAT (5 per cent.) for the professional installation of microgeneration equipment in residential and charitable properties.

And further tax incentives to support investment in innovative new technologies and higher risk ventures:

R and D tax credits provide enhanced tax relief for companies investing in scientific and technological R and D.

To ask the Chancellor of the Exchequer how much pooled funding is available to support cross-departmental co-operation on building a low-carbon economy. (255084)

Funding is allocated to individual Departments. Cross-departmental co-operation is supported through the Cabinet Office.