As part of the UK’s Climate Change Programme the Climate Change Levy has effectively replaced the Fossil Fuel Levy (introduced in 1989 when global warming became a worry). Some of the proceeds go to fund energy efficiency initiatives such as the Carbon Trust.

The intention of both of the taxes was to give business managers an incentive to increase energy efficiency and to reduce carbon emissions by switching to tax-free renewable energy from new renewables and approved cogeneration schemes. There is still a tax on nuclear generated energy, even though it causes no direct carbon emissions.

You may get relief or be exempt from some taxes if :

• you use a lot of energy because of the nature of your business
• you’re a small business that doesn’t use much energy
• you buy energy-efficient technology for your business

Ask us for more information.

The CRC is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organisations.

These organisations are responsible for around 10% of the UK’s emissions. The scheme features a range of reputational, behavioural and financial drivers, which aim to encourage organisations to develop energy management strategies that promote a better understanding of energy usage.

Department for Business, Energy and Industrial Strategy