The Climate Change Levy (CCL) was introduced in April 2001 to reduce the energy consumption levels in commercial businesses and industry within the UK and ultimately to reduce the impact of global warming as a result of the Kyoto treaty.
The UK government agreed that in order to achieve the necessary reductions as agreed at the Kyoto summit, greenhouse gas emissions must be lowered by 12.5% between 2008-2012. In order to implement the necessary changes, the Climate Change Levy was brought in. As a result businesses in the UK have encountered an average increase of between 10 and 20 per cent on business energy costs over this period.
Large energy users are most affected by the tax and as an incentive the government have offered rebates to energy users showing a commitment to reducing energy usage. Discounts on the levy of up to 80% are available to businesses but there is a great deal of necessary investigation required to establish eligibility.
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