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PUBLICATION; MATERIALS RECYCLING WEEK VOL 186 ISSUE 24
9 DECEMBER 2005
HEADLINE; PRE BUDGET SHOWS SUPPORT FOR BIOFUELS
Further reductions in VAT rates for wood fuelled boilers were announced by the government in its pre budget report.
It said that microgeneration offered a long term solution to reducing emissions and tackling fuel poverty, and the Department of Trade and Industry (DTI) will publish a microgeneration of developing countries, to support international efforts to tackle climate change.
The report said that improving waste management by increasing resource efficiency and reusing and recycling waste to deliver economic value was one of the “key environmental challenges” facing the UK.
It also confirmed that the government would go ahead with a Renewable transport Fuel Obligation (RTFO) and expected it to be launched in April 2008 with a target level of 5% in 2010/11.
Decisions on target levels for RTFO in 2008/09 and 2009/10 will be set out in the Budget 2006, after discussions with stake holders.
The Government also announced greater capital allowances for the cleanest bio-fuel plants. A 100% first year allowance will be introduced- subject to state aids approval- for plants that meet certain criteria to ensure that good carbon balance is incorporated into o their design.
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