Source · Select Committees · Business and Trade Committee
Recommendation 7
7
Accepted
Paragraph: 43
Introduce tailored capital allowance regime responses to attract investment in low-carbon energy projects.
Recommendation
The UK has become less attractive to energy investors. The UK is in a global race against larger markets to attract capital to decarbonise the economy. The US and EU have introduced a series of long-term tax incentives for clean energy infrastructure. The UK Government has yet to respond. We recommend that when reviewing the competitiveness of fiscal incentives offered by the UK to encourage investment in low- carbon energy projects, the Government should consider providing a more tailored response in the capital allowance regime for the sector.
Government Response Summary
The government launched the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS), worth up to £160 million, on March 30, 2023, to provide grant funding and leverage private investment in port infrastructure.
Paragraph Reference:
43
Government Response
Accepted
HM Government
Accepted
24. The Government launched the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS), worth up to £160 million, on 30 March 2023. 25. FLOWMIS provides grant funding to leverage private sector investment in port infrastructure. 26. The Government is working closely with the Floating Offshore Wind Taskforce on next steps to tackle barriers to deployment, enable collaboration in the industry, and to create the right environment for further investment. 27. The Government is working with other sources of public funding, to maximise the impact of investment.