Climate Change Levy (CCL Reduction) is a tax on energy used by Industry, Commerce and the Public Sector introduced in 2001 as part of the UK Government’s Environmental Policy. Climate Change Agreements (CCAs) provide 80% rebate on Climate Change Levy for energy intensive sectors which agree to and meet targets for improving their energy efficiency. Climate Change Agreements were introduced in 2002 and run to 2012. If your business is part of the 40 or so ‘energy-intensive industries’ covered by Climate Change Agreements, you may qualify for a reduction on your levy. The agreements give businesses the chance to get an 80% reduction, provided they can meet milestones set to them by the government. For more information, see the Defra website.
Each Agreement has milestone targets which have to be met every two years. There are currently over 3,300 UK Companies with Climate Change Agreements, a large percentage of which have not met their historic targets through energy saving alone but have had to purchase carbon credits to meet their shortfall. The benefits to companies in having a Climate Change Agreement outweigh the disadvantages as shown below:
We have a network of customers who already have a CCL reduction in place and this helps to improve the efficiency and competitiveness of manufacturers who are high intensive energy users. By bringing together like minded non-competitive companies to collaborate and implement strategic plans it will help Climate Change Levy targets to be met and perhaps even exceeded.
Networks are a key source of information and support as they:
The CCL Reduction Energy Network – The Energy Network, provides financial support by providing information and consultancy to companies which have Climate Change Levy Agreements, to help them reduce carbon emissions and meet their Milestone Targets. Benefits of joining the Network include: