Government seeks views on Green Gas Levy

The government has launched a consultation to gain views on a Green Gas Levy, which will reduce emissions from the gas grid and help the UK reach its net zero target by 2050.

Green gas – or biomethane – is produced from environmentally-friendly organic waste products. Using more of this gas from renewable sources to power boilers in homes, or in industrial processes in factories, will help to lower carbon emissions and protect the environment without hitting consumers’ pockets.

With the potential to prevent as much as 21.6 million tonnes of CO2 entering the atmosphere, the Green Gas Levy will result in only minimal costs for consumers – starting at just 11 pence per month – yet will see climate gains equivalent to planting over 71 million trees.

The Green Gas Levy was first announced in the 2020 Budget earlier this year, and this announcement launches a consultation which invites views on how the final initiative will be designed and implemented.

The levy will play a key role in supporting the government’s UK-wide green economic recovery by funding the Green Gas Support Scheme, which will help bring investment into rural areas of Great Britain and support jobs in this sector.

More biomethane plants will be built as a result of the funding from the levy, leading to more biomethane being injected into the grid. This will also benefit society by boosting our carbon savings, and making an important contribution to the UK’s efforts to mitigate the impacts of climate change. The launch of the consultation has been welcomed by the gas industry.