With the current climate crisis, companies are doing more to improve their sustainability. Not only this, but with the push for net zero across global markets increasing, many firms want to take stock of their carbon footprint.
Another motivator for this is the significant savings that can be made through green incentives and schemes – which many businesses are turning to to help lower carbon emissions, pollution and waste levels.
What Are Green Schemes?
These schemes have been launched by the government to help businesses and encourage the nation to be more environmentally friendly. The green schemes available to you will depend on the type of business you own and the industry that you are in.
Green Home Finance Accelerator
This scheme is provided by the government to encourage development of green finance products that can increase the number of people using and embracing home energy efficiency and low carbon heating measures. It is part of the UK Government’s Net Zero Innovation Portfolio to provide £20 million grant funding to support the design, development and management of propositions to encourage energy efficiency in homes.
Industrial Energy Transformation Fund
This scheme is now in its second phase, providing funding for feasibility and engineering studies for the distribution of energy efficiency and decarbonisation projects.
Enhanced Capital Allowances
Under the Enhanced Capital Allowances scheme, businesses that implement environmentally friendly changes within their company can claim a 100% first-year capital allowance against purchases – such as energy-efficient machinery and water saving devices. This allows businesses to claim back which encourages more businesses to be climate conscious when making investments.
Climate Change Agreements
The Climate Change Agreement is a voluntary agreement between businesses and the Environment Agency to control the energy use and carbon emissions of commercial entities. If companies can deliver, they become eligible for a discount on the Climate Change Levy – a tax on commercial electricity and fuel bills.
Research and Development Tax Relief
Companies may find themselves spending a large amount of money on finding solutions to their issues or projects to make them more climate friendly, and the Research & Development Tax relief may help this. Businesses who show a focus on developing sustainable solutions within their operation may expect to be granted a tax relief up to 44% on the outgoings.
Governments across the globe are formulating new strategies to encourage businesses to think about the climate, and are rewarding those who implement such schemes. We are expert accountants and business consultants who can help you to understand the schemes that may benefit your business. Contact us now to speak to one of our specialists.