Responding to reports that the Treasury might impose a windfall tax on electricity generators, including renewable energy developers, Mike Fox, Head of Sustainable Investments at Royal London Asset Management, said:
“The social consequences of higher energy prices cannot and should not be ignored. However, levying additional taxes on businesses directly investing in renewable generation feels contradictory to the UK’s desire for greater energy independence and a greener power system that can help to deliver a net zero economy.
“The government has other tools which it could use to both raise funds to help tackle the cost of living crisis AND encourage greater investment in the UK’s green economy, such as encouraging the Crown Estate to unlock more seabed for offshore wind.”
The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.