UK Climate Change Programme 2006 - JNCC - Defra

More documents

Recommendations

Info

46 Business Existing measures Carbon savings in 2010 (MtC) Voluntary UK emissions trading scheme 0.3 Carbon Trust 1.1 Building Regulations 2002 0.4 Building Regulations 2005 0.2 Climate change agreements 2.9 TOTAL 4.9 Climate Change Levy 1 3.7 Potential carbon savings Additional measures Carbon savings in 2010 (MtC) Carbon Trust support for investment in energy efficiency in SMEs 0.1 Measures to encourage or assist SMEs to take up energy saving opportunities 0.1 TOTAL 0.2 A framework for business action 8. Business has asked for a clear, flexible and stable policy framework that allows long-term planning and investment in reducing greenhouse gas emissions. The Government and devolved administrations are committed to delivering this. 9. The policy framework draws together in an integrated way a range of instruments and measures including: • economic instruments – the climate change levy and, for energy-intensive industries, the associated climate change agreements; emissions trading; enhanced capital allowances for energy-saving technologies and grant schemes; • technology deployment – the Carbon Trust delivers an integrated programme of support to accelerate the take up of low carbon technologies and other energy saving measures; • regulation – in England and Wales, implementation of the IPPC directive through the pollution prevention and control regulations, which require major industrial plants to take up best available techniques, and tightening the energy efficiency requirements of the Building Regulations in England and Wales and the Building Standards (Scotland) Regulations; • measures to make the market work better – helping business to respond to market pressures with advice and information; improving the energy efficiency of consumer products and other equipment; and supporting benchmarking; and • improving public and company information – making it easier for business to measure their emissions and set public targets for improvement by establishing clear guidelines for companies reporting on greenhouse gas emissions. 10. The introduction of the EU emissions trading scheme in January 2005 means that overlapping policy measures now cover some business sector emissions. As an input into the review of this programme, the Government asked the Carbon Trust, as part of the Energy Efficiency Innovation 1 An independent evaluation by Cambridge Econometrics (CE) concluded that CCL would deliver annual carbon savings of 3.7MtC by 2010, from an announcement effect and price effect of the levy. This figure assumes CCL rates are increased in line with inflation from 2005 to 2010. The impact of CCL in the projections is incorporated through the price elasticity of demand for different fuels (‘the price effect’), and there is no separately identified announcement effect within the UEP baseline.
Business 47 Review, to consider the future of measures impacting on business, in particular the relationship between the EU trading scheme and climate change agreements, and to recommend improvements to the policy mix. A key consideration was that while the EU emissions trading scheme will be the most significant policy instrument, it is unlikely on its own to deliver the full potential of emissions reductions from business. 11. The Carbon Trust concluded that the current overlap between the EU trading scheme and climate change agreements is not an economic burden at this stage but can create additional administrative requirements. As the EU emissions trading scheme becomes more established, the implications of this for wider UK climate change policy will be considered. The Government will explore the medium-term regulatory framework in the light of developments in the EU emissions trading scheme. Climate change levy 12. The climate change levy (CCL), introduced in 2001, seeks to encourage businesses to improve the efficiency with which they use energy. Improving energy efficiency is an effective way to lower emissions of carbon dioxide, and can also help businesses reduce their energy costs. To support competitiveness, the introduction of the levy was accompanied by a 0.3 percentage point cut in employers’ national insurance contributions (NICs), which has led to a net reduction in tax liability for business. 13. The CCL has had a significant impact on business energy demand which, in turn, has helped improve energy efficiency and reduce emissions. An independent evaluation by Cambridge Econometrics, commissioned by HM Revenue and Customs and published alongside Budget 2005, has examined the effect of the levy since its announcement in Budget 1999 and introduction in April 2001. It concluded that the levy could deliver cumulative savings to 2005 of 16.5 million tonnes of carbon (MtC) and by 2010, annual carbon savings of over 3.5 MtC a year – well above the 2 MtC estimated at the time of its introduction. According to this evaluation, the impact was largely due to an announcement effect, with a smaller reduction in demand due to the price effect of the levy feeding through into higher fuel prices. The impact of the levy is incorporated into the baseline with measures projections but only through the price effect and there is no separately identified announcement effect within the UEP baseline. 14. It is also estimated that by 2010, CCL will reduce energy demand in the economy as a whole by 2.9 per cent a year – and in the commercial and public sector by nearly 15 per cent a year – compared with the levy package not being in place. The reduction in energy demand, along with the 0.3 percentage point cut in employers’ NICs, has reduced costs for business. Cambridge Econometrics estimated that the CCL/NICs package will reduce overall unit costs for business by 0.13 per cent by 2010 compared with the package not being in place. 15. The climate change levy is playing a crucial role in enabling the UK to meet its Kyoto Protocol target. Levy rates have not been raised since its introduction. Budget 2006 announced that, to ensure the UK continues to make progress in tackling climate change, CCL rates will increase in line with current inflation. The inflation increase will be introduced on 1 April 2007. The Government is committed to returning CCL revenue to business, discussing with business the most effective way of supporting investment in energy efficiency and the environment. 16. The levy is a tax on the use of energy in industry, commerce and the public sector. The levy does not apply to fuels used by the domestic or transport sectors, or fuels used for the production of other forms of energy (such as for electricity generation) or for non-energy purposes. It does not apply to oils, which are already subject to excise duty. Energy used by small firms is also excluded. There are also several exemptions from the levy, including: • electricity generated from new renewables;
Page 1: Climate Change The UK Programme 200
Page 4 and 5: ©Crown Copyright 2006 The text in
Page 6 and 7: iv Foreword We will work with our E
Page 8 and 9: 2 Contents Section 5 - Annexes 00 S
Page 10 and 11: 4 Executive Summary Recent experien
Page 12 and 13: 6 Executive Summary In the agricult
Page 14 and 15: 8 CHAPTER ONE What is climate chang
Page 16 and 17: 10 What is climate change and why d
Page 22 and 23: 16 International framework for acti
Page 30 and 31: 24 CHAPTER ONE UK emissions invento
Page 32 and 33: 26 UK emissions inventory and proje
Page 34 and 35: 28 UK emissions inventory and proje
Page 36 and 37: 30 CHAPTER TWO Strategy to reduce U
Page 38 and 39: 32 CHAPTER THREE Energy supply The
Page 40 and 41: 34 Energy supply Energy policy 6. T
Page 42 and 43: 36 Energy supply Electricity from r
Page 44 and 45: 38 Energy supply grid. While these
Page 46 and 47: 40 Energy supply phase allocations
Page 48 and 49: 42 Energy supply 53. Carbon abateme
Page 50 and 51: 44 CHAPTER FOUR Business In 2004, t
Page 54 and 55: 48 Business • fuel used by good q
Page 56 and 57: 50 Business Carbon Trust 1,000 inst
Page 58 and 59: 52 Business long-term strategy to t
Page 60 and 61: 54 Business provides interest free
Page 62 and 63: 56 Business could be complex. The r
Page 64 and 65: 58 Business 85. The EU Landfill Dir
Page 66 and 67: 60 Business Environment Agency 93.
Page 68 and 69: 62 Transport make and on the other
Page 70 and 71: 64 Transport Policies and measures
Page 72 and 73: 66 Transport that they can make inf
Page 74 and 75: 68 Transport An example of the fuel
Page 76 and 77: 70 Transport 43. Other aspects of t
Page 78 and 79: 72 Transport • research and devel
Page 80 and 81: 74 CHAPTER SIX Domestic In 2004, th
Page 82 and 83: 76 Domestic 5. Over 2000-10, before
Page 84 and 85: 78 Domestic Additional measures Inc
Page 86 and 87: 80 Domestic Building Regulations 16
Page 88 and 89: 82 Domestic Energy Performance of B
Page 90 and 91: 84 Domestic regulatory action unnec
Page 92 and 93: 86 Domestic • consumers’ lack o
Page 94 and 95: 88 Domestic England 19 will be met
Page 96 and 97: 90 CHAPTER SEVEN Agriculture, fores
Page 98 and 99: 92 Agriculture, forestry and land m
Page 100 and 101: 94 Agriculture, forestry and land m
Page 102 and 103:
96 Agriculture, forestry and land m
Page 104 and 105:
98 Agriculture, forestry and land m
Page 106 and 107:
100 Agriculture, forestry and land
Page 108 and 109:
102 Agriculture, forestry and land
Page 110 and 111:
104 CHAPTER EIGHT Public sector In
Page 112 and 113:
106 Public sector Sustainable Energ
Page 114 and 115:
108 Public sector new unfunded burd
Page 116 and 117:
110 Public sector 24. The Governmen
Page 118 and 119:
112 Public sector Government Estate
Page 120 and 121:
114 Public sector 48. The Higher Ed
Page 122 and 123:
116 Public sector THE ENCODE The De
Page 124 and 125:
118 Stimulating action by individua
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
124 CHAPTER TEN Bringing it all tog
Page 132 and 133:
126 CHAPTER ELEVEN Monitoring and r
Page 135 and 136:
SECTION 3 Adapting to the impacts o
Page 137 and 138:
Adaptation 131 • increased subsid
Page 139 and 140:
Adaptation 133 We will analyse stak
Page 141 and 142:
Adaptation 135 additional market ri
Page 143 and 144:
Adaptation 137 Climate change partn
Page 145 and 146:
Adaptation 139 the UK Presidency of
Page 147:
Adaptation 141 Conclusions 45. It i
Page 150 and 151:
144 CHAPTER ONE Scotland The Scotti
Page 152 and 153:
146 Scotland The review of the Scot
Page 154 and 155:
148 Scotland carried out around 600
Page 156 and 157:
150 Scotland Fuel poverty 28. Polic
Page 158 and 159:
152 Scotland Planning Building Regu
Page 160 and 161:
154 Northern Ireland Northern Irela
Page 162 and 163:
156 Northern Ireland • by 2012 at
Page 164 and 165:
158 Northern Ireland view to ensuri
Page 166 and 167:
160 Northern Ireland network. The i
Page 168 and 169:
162 Northern Ireland increase in th
Page 170 and 171:
164 Wales The impacts of climate ch
Page 172 and 173:
166 Wales CHP 11. Health estates in
Page 174 and 175:
168 Wales conserved and enhanced. C
Page 176 and 177:
170 ANNEX A Emissions projections C
Page 178 and 179:
172 Emissions projections Methodolo
Page 180 and 181:
174 ANNEX B Carbon dioxide Key fact
Page 182 and 183:
176 ANNEX C Methane Key facts Metha
Page 184 and 185:
178 ANNEX D Nitrous oxide 1. Nitrou
Page 186 and 187:
180 ANNEX E HFCs, PFCs and SF 6 Key
Page 188 and 189:
182 HFCs, PFCs and SF 6 HFC, PFC, S
Page 190 and 191:
184 Carbon sequestration Greenhouse
Page 192 and 193:
186 Carbon sequestration future rat
Page 194 and 195:
188 ANNEX H List of greenhouse gase
Page 196 and 197:
190 ANNEX I Review of the 2000 Clim
Page 198 and 199:
192 Glossary of terms HCFC Hydrochl
Page 202:
Published by TSO (The Stationery Of
show all

UK Climate Change Programme 2006 - JNCC - Defra

Create successful ePaper yourself

Delete template?

Save as template?