Some of the UK’s largest companies have pledged hundreds of millions of pounds to tackle climate change and improve sustainability. HSBC has committed to invest £350 million in solar parks and wind farms, while John Lewis has announced plans to switch its heavy delivery trucks to low-carbon biomethane-powered versions by 2028, cutting HGV emissions by over 80%. (more…)
Earlier this year, the government indicated that it could tighten its carbon emissions target with the aim of reaching net-zero emissions by 2050. At the time, Energy Minister Claire Perry said the Committee on Climate Change (CCC) would be asked to explore the implications of a more stringent emissions budget while taking into account the latest climate science, scheduled to be published by the Intergovernmental Panel on Climate Change (IPCC). (more…)
Looking ahead to the next financial year, one of the cost changes to allow for is the increase to the Climate Change Levy (CCL). The CRC Energy Efficiency Scheme will end in 2019, and the government will replace the income stream to the Treasury via an increase to CCL, as follows:
Non-CRC Participants will see a significant increase from April 2019 unless they claim other CCL exemptions. For example, Climate Change Agreements (CCAs) are voluntary agreements available to energy-intensive industries in certain sectors, such as the chemicals sector. In return for meeting energy efficiency targets, these industries secure a CCL discount on their eligible energy use. The current CCA scheme is now closed to new entrants, but for those with a CCA in place, the discount will increase from April 2019 as follows:The year-on-year increase is significant, equating to a 45% increase to CCL for electricity and a 67% increase for gas. The higher increase to the gas rates is a step by the government to rebalance the ratio between electricity and gas as the generation mix for electricity becomes less carbon-intensive. The intention is for the ratio to be 1:1 by 2025.
Percentage discount for holders of a CCA
An exemption from CCL can also be claimed for energy used in mineralogical or metallurgical activities (as defined by HMRC), often referred to as the Min/Met exemption. Other exemptions are in place, for example for some charities and for businesses that consume negligible quantities of energy.
The final CRC year runs from April 2018 to March 2019, with the final payment for buy-to-comply allowances due in September 2019. The reporting element of the CRC will be replaced by the new Streamlined Energy and Carbon Reporting (SECR), also to be introduced from April 2019.
Claire Perry, minister of state for energy and clean growth, recently indicated that the UK could tighten its carbon emissions target to reach net zero emissions by 2050. Speaking at the meeting of Commonwealth leaders, the minister announced that she would ask the Climate Change Committee (CCC) to examine the implications of tightening the existing carbon budget. (more…)