Manufacturing industry lobby group EEF has called on the Government to include an evaluation of the ‘best economic and environmental use’ of waste and other types of biomass in its ongoing carbon taxation review.
The organisation said the Government should create a mechanism to ensure that biomass was being used where it added most value to the economy.
The EEF also said that fostering a consistent recycling scheme across the UK that sought to increase material quality, and establishing material flow analysis for key resources, were important elements of a low-carbon strategy that should be addressed during the next five years.
The recommendations came in a report, The Low Carbon Economy – From Stick to Carrot, and intended to feed into the carbon taxation review announced by chancellor George Osborne in July’s Budget.
EEF policy director Paul Raynes said the Government had to reform the current system of energy taxation and move to a model of tax breaks that rewarded investment in advanced low-carbon technologies.
“The Government should use the energy taxation review as an opportunity to step back and make some bold decisions that we believe can reduce energy costs, as well as cutting back on carbon emissions, and improving the environment,” he said.
“Greening heavy industry cannot happen without rolling out radical new technologies that are still far from fully developed, or financially viable, and doing that quickly.
“Industry wants to step up to the plate but the economics say it cannot do so alone. This must be a partnership between business and the Government. If we cannot put roller skates under the new green technologies, existing tax policies will undermine these fundamental British industries to no environmental gain in the long run.”
The carbon taxation review is due to conclude later this year.