When the Levy breaks
The CBI believes that negotiated agreements should be made available to as wide a spectrum of the business sector as is feasible, rather than being limited to those sites covered by IPPC. In return, participating sectors should receive relief from the Levy on a banded sliding scale related to factors such as their initial exposure to it. There are several reasons for this:
There are a number of ways in which agreements and rebates could be organised:
- They could be arranged by SIC codes and linked to indicators such as either energy intensity, net exposure to the levy or degree of exposure to global competition. However, such indicators may not be easy to define, and there is also a question as to how far groupings by SIC code would need to be disaggregated into sub-sectors.
- Alternatively, the Government could instigate a voluntary approach to agreements. It could be the case that any group of industries with an aggregate energy consumption above a certain threshold, offering a certain aggregate reduction in emissions beyond “business as usual”, would be eligible to negotiate an agreement. Rebates could be banded according to one or a combination of the indicators mentioned above.
Either of these approaches could throw up their own boundary issues, but the CBI believes that these can be resolved. Government needs to make a positive commitment to find an approach which allows the greatest scope for interested players to negotiate agreements and so minimise their exposure to the levy while increasing their emissions reductions.
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