In late 2015, the U.K.’s economic and finance ministry sought public responses to a consultation concentrated on simplifying and improving the existing energy efficiency tax landscape.
Carbon Tracker’s submission responded to questions on simplifying overlapping policies, carbon reporting frameworks, and simultaneously incentivising investment and reducing carbon emissions.
Our letter highlighted the importance that any attempt to improve existing regulation must align with the U.K.’s overall policy objectives, including the potential misuse of tax incentives available on to companies on alternative markets.
Moreover, while a focus on reporting of companies’ carbon emissions is important, we suggest that improving reporting of and transparency around carbon asset risk – an on-going focus of the Bank of England – should be a priority for the Government. We recommend the stress-testing to a two-degree compliant scenario of any U.K. Companies Act company where there exists investor risk in this regard.