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Climate Change Levy

The climate change levy is a tax introduced by the UK Government in 2001 on the use of energy in industry, commerce and the public sector. Participating organisations benefit from cuts in employers' National Insurance Contributions and additional support for energy efficiency schemes and renewable sources of energy. The levy is intended to promote energy efficiency, encourage employment opportunities and stimulate investment in new technologies. Climate Change Agreements (CCAs) allow organisations to pay a reduced rate of climate change levy on energy supplies for eligible facilities. The agreements set out energy efficiency targets that must be achieved in order for the specified facilities to receive the discount. Enhanced Capital Allowances (ECAs) schemes enable businesses to claim capital allowances on investments.

Related terms:

• Carbon footprint
• Carbon Neutral
• Carbon Offsetting
• Climate Change
• Combined Heat & Power (CHP)
• Embodied energy
• Emissions trading
• Energy efficiency
• Energy Performance Certificate (EPC)
• Energy Performance of Buildings Regulations
• Micro-generation
• Renewable Energy