Climate Change Legislation

There are a number of Government schemes that aim to respond to Climate Change. One of which is the Climate Change Act 2008 that became law in November 2008 and has taken effect from April 2010. The UK is the first country to pass legislation of this kind which introduces a long-term legally binding programme to respond to climate change. The Act creates a new approach to managing and responding to climate change in the UK and forces an 80% reduction of greenhouse gases by 2050 with a reduction of at least 34% by 2020, compared to a 1990 baseline.

The Climate Change Levy (CCL) was announced in the 1999 Budget and came into effect in 2001. It is a key element in the Government’s aim in reducing greenhouse gas (GHG) emissions and encouraging energy efficiency. The CCL is a tax on energy usage in industry, commerce and the public sector.

In order to help some energy-intensive organisations the Government has negotiated Climate Change Agreements (CCAs) in some sectors, including the food and drink sector. CCAs are voluntary and give members a discount on the CCL if they reach additional CCA targets for improving energy-efficiency or reducing carbon emissions.

The Carbon Reduction Commitment Energy Efficiency scheme (CRC) requires millers to register with the Environment Agency if:

(A) The organisation or its subsidiaries had at least one half hourly meter (HHM) settled on the half hourly market and
(B) The annual electricity consumption of the organisation (including subsidiaries), were all HHM’s with at least 6000mw (bills likely to have been in the range of £500,000 to £1m)

Registration opened on the 1st of April 2010 and ran until the 30th of September 2010. Most flour mills are likely to be exempt from the CRC as companies that have more than 25% of their energy and emissions covered by a Climate Change Agreement (CCA) will be exempt from the CRC. However companies must still register for the CRC if they meet the requirements, even if they are a member of a CCA, or risk being fined.