Low Carbon Emissions Plan To Increase Ethical Investment Opportunities
The Government yesterday released its white paper on how it plans to reduce the UK’s production of carbon emissions and to move toward a low-carbon economy.
The white paper, The UK Low Carbon Transition Plan, sets out the goal of the Government to cut the UK’s carbon emissions by 34 per cent by 2020.
Achieving that goal will be difficult and will require a significant shift in attitude by consumers and businesses. Reducing carbon emissions must become a fundamental consideration in every element of the way in which people live and work. Businesses, particularly those in sectors responsible for generating the most emissions such as power, transport and agriculture, will have a large part to play in achieving the Government’s goals.
One of the UK’s leading investment houses, Jupiter, has said that the Government’s white paper is a defining moment for green and ethical investment in the UK.
Many commentators have expressed the view that businesses that are more environmentally friendly will, in the future, do better than heavier polluting businesses that will face increasing ‘green’ pollution taxes and penalties imposed by governements. The UK Government will be keen to generate extra tax revenue by penalising heavier polluting businesses under the banner of ‘green’ taxation. Increasing taxation on heavier polluting businesses will naturally impact on those businesses’ profit margins going into the future.
Part of the Government’s plan is to increase the amount of renewable energy in the UK by 15 per cent of all energy by 2020. Meeting that target will require substantial investment in renewable energy sources such as in the offshore wind industry.
