Climate Change Agreement

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When a climate change levy was introduced in the United Kingdom, the position of energy-intensive industries was considered, given their energy usage, the requirements of the Integrated Pollution Prevention and Control regime and their exposure to international competition. As a result, a 65% discount from the levy was allowed for those sectors that agreed targets for improving their energy efficiency or reducing carbon emissions. The discount on electricity increased to 90% in 2013.[1]

An 'energy-intensive' sector is one which either carries out activities which are listed as Part A(1) or A(2) activities in Part 2 of Schedule 1 to the Environmental Permitting (England and Wales) Regulations 2010 (Statutory Instrument 2010 No.675) (as amended), or that satisfies energy intensity criteria provided by the Department of Energy and Climate Change. [2]

The regulations cover the ten main energy-intensive sectors of industry (aluminium, cement, ceramics, chemicals, food and drink, foundries, glass, non-ferrous metals, paper, and steel) and over thirty smaller sectors, and in agriculture, livestock units for the intensive rearing of pigs and poultry.

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