UK makes net-zero target law as HMRC hikes VAT for solar power: Good With Money news brief

Written by Lori Campbell on 1st Jul 2019

UK sets net-zero target into law

The UK has made history by officially enshrining a net-zero emissions target for 2050 into law.

MPs unanimously supported the decision and the Commons has now approved the amendment without the need for a formal vote. The legislation was officially signed on Thursday (June 27) by Energy and Clean Growth Minister Chris Skidmore.

He said: “The UK kick-started the Industrial Revolution, which was responsible for economic growth across the globe but also for increasing emissions.

“Today we’re leading the world yet again in becoming the first major economy to pass new laws to reduce emissions to net zero by 2050 while remaining committed to growing the economy – putting clean growth at the heart of our modern Industrial Strategy.”

Meanwhile, France has voted into law a goal for France to cut its greenhouse gas emissions and go carbon-neutral by 2050.

London Climate Action Week kicks off with corporate clean energy pledges

London Climate Action Week has kicked off today with four big businesses announcing commitments to source 100 per cent clean energy and scale up electric vehicle fleets.

Sportswear retailer JD Sports, which has more than 900 stores, has pledged to source 100 per cent renewable electricity for its operations in Europe by 2022. It will also seek to meet the same goal globally by 2025.

It joins property investor Derwent London, which has committed to source 100 per cent renewable electricity by 2020 for its entire portfolio of Central London properties. This covers 5.4 million square feet of real estate.

Shopping centre owner Intu and car park management firm APCOA unveiled plans to ensure their entire fleet of road vehicles are battery-powered in the near future.

The pledges are part of the Climate Group’s RE100 and EV100 initiatives to achieve 100 per cent renewable electricity and 100 per cent electric vehicles.

HMRC pushes steep VAT increase for new solar-battery systems

Homeowners hoping to shrink their carbon footprint by installing a solar-battery system face a steep VAT increase from October under new laws proposed by HMRC.

The Treasury put forward legislation to raise VAT for home solar-battery systems from five per cent to 20 per cent, on the same day that MPs debated the government’s new netzero carbon target for 2050.

Meanwhile, home coal supplies will continue to receive the lower VAT rate. The Renewable Energy Association (REA) said the rise “contradicts the government’s commitment to tackling climate change” only weeks after parliament declared a climate emergency.

HMRC has blamed EU tax laws for the planned rise because they rule out lower VAT rates for energy saving equipment under state aid rules.

Co-op pledges to halve emissions by 2025

The Co-op supermarket chain has pledged to halve its greenhouse gas emissions by 2025.

It joins a growing group of companies committed to aligning their emissions reductions with the more ambitious target of the Paris Agreement. BT, Tesco, Carlsberg and Pukka Herbs have been joined by Carbon Credentials, Burberry, and now The Co-op.

The Co-op’s goal to halve direct emissions and reduce supply chain emissions by 11 per cent before 2025 has been approved by the Science Based Targets initiative (SBTi). The retailer has already halved its emissions over a 10-year period from 2006, and has recorded a 20 per cent reduction over the past 12 months.

Solar Foods plans to sell 50m meals made from thin air

A Finnish company that makes food from electricity, water and air plans to have 50 million meals’ worth of its product sold in supermarkets within two years.

Solar Foods is also working with the European Space Agency to supply astronauts on a mission to Mars after devising a method it says creates a protein-heavy product that looks and tastes like wheat flour at a cost of €5 (£4.50) per kilo.

The Helsinki-based company, assisted by research from the VTT Technical Research Centre of Finland and the Lappeenranta University of Technology, will apply to the EU for a novel food licence later this year before starting commercial production in 2021. The powder, known as ‘Solein’, can be given texture through 3D printing, or added to dishes and food products as an ingredient.

It is produced through a process similar to brewing beer. Living microbes are put in liquid and fed with carbon dioxide and hydrogen bubbles, which have been released from water through the application of electricity. The microbes create protein, which is then dried to make the powder.

Sign up to our weekly newsletter

Get better with money, in every way.

About the author

Lori Campbell

A former national newspaper journalist, Lori Campbell is Good With Money's chief writer and head of social media.

Continuing to fight the fashion revolution

Neil Brown
10/07/2020

UK makes net-zero target law as HMRC hikes VAT for solar power: Good With Money news brief

About the author

More from Good With Money

12m drivers plan to go electric within 2 years

Biggest financial challenges facing young adults

Continuing to fight the fashion revolution