CCL a ‘blunt tool’ claims green consultants

Geoff Roberts, co-director of EcoPartners, told the ‘one size fits all’ approach to climate change and emissions was not equal and suggested a tailored scheme to meet the needs of individual clients.

Despite this, Roberts said, the issues of climate change and emissions would not go away, but was a serious strategic challenge facing all industrial sectors.

‘The government will not hold back on plans to reduce CO2 emissions. This is going to fundamentally alter the market in the next few years.’ Roberts said.

‘It will change buying decisions, and the way investors make decisions about where to put their money,’ he added.

EcoPartners estimates the climate change levy will increase energy costs by around 15%. For large companies with energy bills of Pounds 20m, this would mean an increase in energy prices by Pounds 3m per annum, although this would be offset by a reduction in NI contributions of 0.3%.

According to Roberts, companies effected need to take the issue to a much higher strategic level and find some way of deriving a competitive advantage out of the levy, and any future legislation.

Companies that follow the government’s target and reduce gaseous emissions by 20%, would see a bottom line benefit of Pounds 6m in direct savings, incentives and trading payments.

In addition any capital expenditure related to these savings could be eligible for 100% capital expenditure allowances.

The introduction of the CCL in April follows the UK’s participation at the Kyoto Summit on greenhouse gas emission in 1997, where it agreed to a legally binding national target of 12.5%, as well as a 20% reduction in carbon dioxide emissions by 2012.

The EU agreed to a limit its emission of greenhouse gases to 8% by 2012.


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