Business

Two north of England sites selected for multibillion-pound carbon capture plan

The UK government has selected two sites in the north of England to develop multibillion-pound carbon capture projects by the middle of the decade as part of its fast-track scheme to cut 20-30m tonnes of CO2 a year from heavy industry by 2030.

Ministers gave the green light to the East Coast Cluster, which plans to capture and store emissions produced across the Humber and Teesside, and the HyNet North West project in Liverpool Bay, which will also produce low carbon hydrogen from fossil gas.

The East Coast Cluster is backed by the oil companies BP and Equinor, together with the energy firms Drax and SSE, and hopes to cut up to 27m tonnes of CO2 a year by 2030. The HyNet project, backed by the Italian oil company Eni and Progressive Energy, plans to reduce CO2 emissions by 10m tonnes a year by the end of the decade.

The projects, which saw off competition from three rivals, are the first to move ahead with the government’s support since ministers scrapped a £1bn programme six years ago. If they can prove they offer energy billpayers good value for money then they will qualify for support through the new £1bn carbon capture fund.

Greg Hands, the energy minister, told parliament on Tuesday that carbon capture would be “essential to meeting our net zero ambitions” and would be “an exciting new industry to capture the carbon we continue to emit and revitalise the birthplaces of the first Industrial Revolution”.

He said the “new major infrastructure projects for a new sector of the economy” would be a “significant undertaking”, and that there were “significant risks” to delivering them by the mid-2020s.

The government has also earmarked a carbon capture cluster on the east coast of Scotland – that includes the Acorn carbon capture and storage project based north of Aberdeen – as a “reserve cluster” that will be eligible for the funds if one of the other projects fails.

The government vowed to bring forward two industrial carbon capture clusters by the mid-2020s, and four by 2030, to help capture the emissions produced by factories and chemical plants before storing the carbon away permanently where it cannot contribute to the heating of the Earth’s atmosphere.

Carbon capture is also expected to play a key role in producing “clean-burning” hydrogen from fossil gas. Hydrogen can be extracted from gas and burned without emissions by gas power plants, heavy industry or even in homes. But the process of producing hydrogen releases carbon emissions into the air unless it is captured at the source and stored.

The plans are part of a flurry of long-awaited green commitments from the government in the run-up to the Cop26 climate talks in Glasgow in the next two weeks. It has also put forward plans to help cut emissions from home heating alongside a wide-ranging plan to reach net zero across the economy.

Ruth Herbert, the chief executive of the Carbon Capture and Storage Association, said the two frontrunner projects would “showcase the breadth of applications” for carbon capture, but urged the government to set out a clear plan for how the technology would be scaled up in coming decades to meet carbon targets.

“Ahead of next week’s spending review, we are calling for the government to introduce a delivery plan for carbon capture, utilisation and storage – setting annual spending budgets over the next decade to give the industry certainty to invest in projects now,” she said.

Business

NAFDAC orders recall of Dove Beauty Cream Bar soap

The National Agency for Food and Drug Administration and Control has ordered the recall of Dove Beauty Cream Bar Soap (100g) with batch number 81832M 08, produced in Germany.

In a statement released on its X handle, the agency said the recall was due to the presence of a chemical impurity.
According to NAFDAC, the product violates the Cosmetic Products Regulation by containing Butylphenyl Methylpropional, also known as Lilial, a chemical associated with serious health risks.
The agency explained that BMHCA has been banned in cosmetic products because it can harm the reproductive system and potentially affect the health of unborn children.

It added that the chemical has been linked to skin sensitisation, triggering allergic reactions in some users.

The statement reads;

“The National Agency for Food and Drug Administration and Control (NAFDAC) is alerting the public about the recall of Dove Beauty Cream Bar Soap (100g) with batch number 81832M 08, produced in Germany, due to chemical impurity. The product does not comply with the Cosmetic Products Regulation, as it contains Butylphenyl Methylpropional (BMHCA), which is prohibited due to its risks of reproductive harm, danger to unborn children, and potential for causing skin sensitization. Several regulatory authorities in the EU have already banned its marketing.”

Other Dove cosmetic products recalled/banned in other countries due to the presence of BMHCA are Derma Spa Goodness, Men Care, Men Care+ Sensitive Shield, Natural Touch, Nourishing Body Care Light Hydro, Pampering Body Lotion, Go Fresh, Talco con Crema, Go fresh Pera, Extra Fresh, Goodness3 Skincare Ritual, invisible dry antiperspirant spray + Go Fresh Revitalize nourishing shower gel, Caring hand wash and invisible dry.

The agency said the soaps are not on its database. NAFDAC urged the public to be cautious and vigilant within the supply chain to avoid the importation, distribution, sale and use of the products.

“Importation of soaps is prohibited in Nigeria as per the restricted and import prohibition list. Beyond the import restrictions soaps and cosmetics are parts of the items ineligible for foreign exchange to import in Nigeria. These products are also not available in the NAFDAC database. Importers, distributors, retailers and consumers are advised to exercise caution and vigilance within the supply chain to avoid the importation, distribution, sale and use of the above-mentioned products. Members of the public in possession of the product should discontinue the sale or use and submit stock to the nearest NAFDAC office.”

NAFDAC also urged health experts to report adverse events experienced with the use of regulated products to its nearest office.

The statement added

“Healthcare professionals and consumers are encouraged to report adverse events experienced with the use of regulated products to the nearest NAFDAC office, via pharmacovigilance@nafdac.gov.ng, E-reporting platforms available at www.nafdac.gov.ng or via the Med-safety application for download on android and IOS stores.”

Business

FG denies report of increasing VAT to 10% despite hardship in Nigeria

The Finance Minister and Coordinating Minister of the Economy, Wale Edun, has denied a report of a potential hike in the Value-Added Tax (VAT) rate from 7.5% to 10%.

In a statement released Monday, Edun clarified that the VAT rate is still firmly set at 7.5%, as outlined in Nigeria’s tax laws.

“The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” Edun affirmed.

He elaborated on the need for a balanced tax system, emphasizing that Nigeria’s tax framework operates on three key components: tax policy, tax law, and tax administration.

“The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of the government,” the minister explained.

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Edun addressed concerns from the public about policies that might seem burdensome, assuring that fiscal measures are designed to foster sustainable growth and reduce poverty, not the opposite.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses flourish,” Edun stated.

In response to media reports suggesting the government is imposing undue hardship on citizens, Edun refuted such claims.

Edun also pointed out recent government actions aimed at reducing the financial strain on Nigerians, particularly by eliminating import duties on key food items like rice, wheat, and beans.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items,” Edun noted.

Edun reiterated that the VAT rate remains at 7.5% and will continue to apply to all eligible goods and services.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” he concluded.

Business

FG imposes levy on transactions above N10,000 on Opay, others

The federal government has imposed a N50 deduction for every electronic money transfer (EMTL) of N10,000 and above, affecting customers of fintech platforms such as Opay and Moniepoint.

The deduction, which is in line with the Federal Inland Revenue Service (FIRS) regulations, is set to take effect from September 9, 2024.

The announcement was made by the fintech companies through notifications to their customers.

In a statement, Opay informed its customers, “Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations.”

The company clarified that these deductions are part of the government’s requirements and not a revenue stream for fintech companies. “It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government,” the statement added.

Similarly, Moniepoint, another major fintech platform, issued a brief notice, stating: “A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024. Your BRM is available to answer questions you might have.”