The government must grant business tax exemptions for renewable energy systems if it is serious about meeting targets to combat climate change, retailers have urged.
The British Retail Consortium (BRC) has written to the Office of the Deputy Prime Minister (ODPM) saying the country's retailers are keen to do their bit toward fighting global warming but those investing in carbon-free renewables are burdened by increased business rates.
The BRC argues that government cannot expect to achieve its 2010 targets for renewable energy systems if it continues to tax firms for using systems such as wind turbines and solar panels.
Meanwhile, it says, the government still provides exemptions to Combined Heat and Power systems, which emit carbon.
"It is clearly anomalous for the government to exempt plants that emit carbon from valuation but to continue to rate entirely carbon-free renewable plants," said Kevin Hawkins, BRC director general.
"The exemption should be extended to also cover renewable energy systems."
"The retail sector wants to play its part and could even take the lead in adopting renewable energy systems, but leading UK retailers, who look to reduce their carbon emissions by investing in these systems, are getting taxed - this is hardly an incentive."
Hawkins said that government must adopt a consistent policy of support to encourage more retailers to change.
