Proposals for a green gas levy

Heating of homes, businesses and industry is responsible for a third of the UK’s greenhouse gas emissions, making the decarbonisation of heat one of the biggest challenges we face in meeting our climate targets.

The Green Gas Levy, announced in the March 2020 Budget, will fund support for biomethane injection into the gas grid through the new Green Gas Support Scheme. Proposals for this scheme were set out in the April 2020 consultation Future support for low carbon heat.

In this consultation, we are seeking views on policy options for the Green Gas Levy. It covers:

• the design of the Green Gas Levy
• the budget control and financial management of the Green Gas Levy
• an explanation of the anticipated impact on gas bills for domestic and non-domestic customers
• the administration, compliance, and enforcement of the scheme
• how payments will be made on the Green Gas Support Scheme ahead of the first Green Gas Levy collection
• a future transition to a volumetric approach to the design of the Green Gas Levy

We are working with devolved administrations to implement these proposals across Great Britain.

We will hold workshops in mid-October on the design of the levy. These will primarily be of interest to gas suppliers, but are open to everyone. Space will be limited to 1 person per organisation.

If you would like to attend a workshop, please email gglconsultation@beis.gov.uk.

See the BEIS consultation privacy notice.

Please respond online via our consultation hub wherever possible. It is our preferred method of receiving responses. Responses submitted by email will be accepted. If responding by email, please use the response template here.

Please do not send responses by post to the department at the moment as we may not be able to access them.