Climate change levy
The Climate Change Levy (CCL) is a UK tax on energy for industries like the lime sector. It was implemented in 2001 and aims to encourage energy efficiency and reduce carbon dioxide emissions. The levy only applies to fossil fuels and electricity and it therefore incentivises the use of alternative energy sources.
Climate change agreements
The Government recognises that such a scheme would be seriously damaging to energy intensive industries, which rely so heavily on energy for their business and need to be internationally competitive. Therefore, the Government has provided CCL discounts for those industries who sign up to a Climate Change Agreement (CCA), which is an agreement of targets for improving energy efficiency or reducing carbon dioxide emissions.
By signing a CCA, energy-intensive industries can obtain a 90% discount for electricity and a 65% discount for gas, providing the challenging targets are adhered to.
The BLA met its last target for 2010 and the next phase of the CCA’s began in April 2013. The sector’s Phase II target for 2020 is even more challenging and focuses on the electrical efficiency of the industry.
For further information please see the Environment Agency website: