CBI urges government to provide tax incentives for green technology

The Confederation of British Industry (CBI) in the UK is pushing for tax incentives to promote the use of green technologies such as heat pumps in order to combat climate change and stimulate economic growth. The CBI recognizes the potential of the green economy to help the UK achieve its goal of reaching net zero carbon emissions by 2050, as well as the opportunity for significant economic growth, with a potential GDP boost of up to £57bn per year by 2030.

However, the CBI is concerned that the UK is at risk of falling behind global competitors in terms of green technology investment. The US and Europe have already implemented robust reform packages that offer tax credits, subsidies, grants, and loans to incentivize green investment. In response, the CBI is proposing a series of recommendations to specifically target key green technologies, signaling to businesses that the UK is committed to pursuing a green agenda and is prepared to invest in it.

These recommendations include the introduction of a Green Innovation Credit with a 40% headline rate for green technologies and processes, a reduced corporation tax rate of 10% for profits generated from green technologies, and a new capital allowance rate of at least 120% to support capital investment. CBI chief executive Rain Newton-Smith emphasizes the importance of the UK regaining its leadership position in the global green growth race, especially as other countries have already made significant progress in this area.

Newton-Smith stresses the need for

By Sophia Gonzalez

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