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Commission authorises the climate change levy rebate for the agriculture sector in the UK

by 5m Editor
22 July 2005, at 12:00am

UK - The European Commission has today authorised the United Kingdom (UK) to grant the agriculture sector a tax rebate of € 687 million over a period of 10 years.

Commission authorises the climate change levy rebate for the agriculture sector in the UK - UK - The European Commission has today authorised the United Kingdom (UK) to grant the agriculture sector a tax rebate of € 687 million over a period of 10 years.

The rebate on the climate change levy of 50% for horticulture and 80% for agriculture sectors covered by Integrated Pollution Prevention and Control (IPPC) agreements allows UK agriculture to accommodate higher energy prices caused by the levy while helping to meet the CO2 reduction targets for the UK and for Europe.

In 2001, the UK introduced a climate change levy on the non-domestic use of energy in order to meet the Kyoto targets.

Energy intensive industries were offered a significant rebate of 80% for a period of 10 years in order to adapt to the new environment and improve energy efficiency and cut carbon dioxide emissions. The agricultural sectors concerned by today’s decision (pig and poultry, food and drink) have entered into Integrated Pollution Prevention and Control (IPPC) agreements and have committed themselves to emission reduction targets and energy efficiency targets. The UK ensures strict monitoring of the commitments. The agreements are reviewed on a regular basis.

A separate special measure of a 5-year rebate of 50% allows the horticulture sector to offset the loss of international competitiveness resulting from the introduction of the climate change levy. The text of the decision will be made available on the Internet at http://europa.eu.int/comm/secretariat_general/sgb/state_aids/agriculture_2005.htm once Member States have indicated whether they want parts of the decisions deleted for reasons of confidentiality. The decision can be found under the aid number NN 12/2004.

Source: European Commission - 20th July 2005

5m Editor