Climate Change Agreement

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Please improve this article if you can. (November 2007)

When climate change levy was introduced in the UK 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 an 80% discount from the levy was allowed for those sectors that agreed targets for improving their energy efficiency or reducing carbon emissions.

An 'energy intensive' sector as one which carries out activities which are listed under Part A1 or A2 headings in Part 1 of Schedule 1 to the Pollution Prevention and Control (England and Wales) Regulations 2000 (Statutory Instrument 2000 No.1973), as amended by the Pollution Prevention and Control (England and Wales) (Amendment) Regulations 2001 (Statutory Instrument 2001 No. 503).

The regulations cover the ten main energy intensive sectors of industry, (aluminium, cement, ceramics, chemicals, food & 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.