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Green taxes in 2011

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2011 has seen the government reiterate their desire for economic growth to be green, setting a challenging 50% emissions reduction target by the mid 2020s. Policies towards this aim are starting to emerge with further progress towards a Green Investment Bank and a new tax to create a floor price for carbon in the electricity sector. There are positive signs of recognition within HM Treasury that green taxes are the most effective policy tool when they prioritise behavioural change incentives over raising revenues. As changes in this area gather pace, tax professionals are well placed to contribute to the response.

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