IoD’s green corporation tax plan is an idea whose time has come

In practice it would take some working out but a carrot to incentivise reducing emissions is a fine idea. The obvious corollary is the stick of higher taxes for heavy carbon-emitters, writes James Moore

The government has a stated commitment of getting Britain to net zero by 2050. So how do we get there? (Getty/The Independent)

It’s not unknown for the Institute of Directors (IoD) to come up with worthwhile proposals, but the business group’s latest is of sufficient worth to raise a question: why on earth hasn’t someone already thought of this?

The IoD’s big idea is tinged a fine shade of green: it is to introduce a lower rate of corporation tax for companies that achieve net zero, with the laudable aim of ensuring that the UK meets its national climate-change target by the 2050 deadline.

Getting to net zero – which has its flaws as a concept, but let’s run with it – will obviously require buy-in from the business community. The latter will have to do a considerable amount of work and, most likely, invest a considerable amount of money.