Economic Instruments - Subsidies

Loan Subsidies for Green Products (UK)

A new UK scheme offering subsidised loans to companies investing in green products was approved by the European commission in February 2009 (ENDS, 2009). 

Under the scheme companies will receive interest rate subsidies of between 25 and 50 per cent on loans, providing the money is invested in products that will "meet or surpass future EU environmental product standards".

The scheme will initially focus on meeting green standards in the car industry, but the UK government says it will be opened to all sectors.

 In April 2009 it was announced that consumers are to be offered incentives of up to £5,000 to purchase an electric car (Guradian, 2009). The cash incentive for consumers would be available to offset the higher upfront costs of electric cars, in particular the price of the batteries in modern vehicles. How the money would be distributed is yet to be decided but it is to be available only to people buying cars that run entirely, or for the vast majority of their time, on electricity. The scheme, which would be enforced by setting a ceiling for the amount of CO2 a car emits, will become operational in 2011.

References

ENDS, 2009. EU approves UK loan subsidies for green products. Environmetal Daily News Service, 27 Feb 2009.

Guardian, 2009. Labour's £5,000 sweetener tolaunch electric car revolution. http://www.guardian.co.uk/environment/2009/apr/16/green-cars-transport-incentives-emissions


 

 

A new UK scheme offering subsidised loans to companies investing in green products was approved by the European commission in February 2009 (ENDS, 2009). 

Under the scheme companies will receive interest rate subsidies of between 25 and 50 per cent on loans, providing the money is invested in products that will "meet or surpass future EU environmental product standards".

The scheme will initially focus on meeting green standards in the car industry, but the UK government says it will be opened to all sectors.

 In April 2009 it was announced that consumers are to be offered incentives of up to £5,000 to purchase an electric car (Guradian, 2009). The cash incentive for consumers would be available to offset the higher upfront costs of electric cars, in particular the price of the batteries in modern vehicles. How the money would be distributed is yet to be decided but it is to be available only to people buying cars that run entirely, or for the vast majority of their time, on electricity. The scheme, which would be enforced by setting a ceiling for the amount of CO2 a car emits, will become operational in 2011.

References

ENDS, 2009. EU approves UK loan subsidies for green products. Environmetal Daily News Service, 27 Feb 2009.

Guardian, 2009. Labour's £5,000 sweetener tolaunch electric car revolution. http://www.guardian.co.uk/environment/2009/apr/16/green-cars-transport-incentives-emissions


 

 


0 Votes

0 Comments

Add Comment