Climate Change Agreement
When the 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.
An 'energy-intensive' sector is one which either carries out activities which are listed as Part A or A activities in Part 2 of Schedule 1 to the Environmental Permitting Regulations 2010 , or that satisfies energy intensity criteria provided by the Department of Energy and Climate Change.
The regulations cover the ten main energy-intensive sectors of industry and over thirty smaller sectors, and in agriculture, livestock units for the intensive rearing of pigs and poultry.
