Climate Change Levy
The Climate Change Levy (CCL) is a tax on energy delivered to
users in the United Kingdom. Its aim is to provide an incentive to
increase energy efficiency and to reduce carbon emissions.
Climate Change Agreements
When CCL was introduced in the UK, the position of energy
intensive industries was considered, given their energy usage, the
requirements of the Integrated Pollution Prevention and Control
regime and their exposure to international competition. As a result
an 80% discount from the levy was allowed for those sectors that
agreed targets for improving their energy efficiency or reducing
The regulations cover the ten main energy intensive sectors of
industry, (aluminium, cement, ceramics, chemicals, food &
drink, foundries, glass, non-ferrous metals, paper and steel) and
over thirty smaller sectors, and, in agriculture, livestock units
for the intensive rearing of pigs and poultry.
Cement industry performance
UK cement manufacturers signed a Climate Change Levy Agreement
with government to deliver an overall energy efficiency improvement
across their sector of 26.8% by 2010 against a base year of 1990.
The industry has already achieved a 25% improvement in energy
Download table: Cement Industry Climate Change Agreement
Performance and Targets 1990 to 2010
The cement industry uses energy efficiently as it represents
around 35% of its production costs and the industry is working hard
to reduce the carbon dioxide it generates through its manufacturing
Achievement of the 26.8% energy efficiency target depends on the
industry's committed investment in new plant and increased use of
alternative fuels. Three new kilns at Rugby (Cemex UK Cement),
Padeswood (Castle Cement) and Tunstead (Buxton Lime Industries)
have replaced older, less efficient processes.
Controlling carbon dioxide
Despite the very large tonnages of limestone the UK cement
industry burns, it contributes less than two percent of the
country's total carbon dioxide production. Over the last eight
years it has cut carbon dioxide emissions by 18.5% - over two
million tonnes. Its use of alternative energy sources not only
replaces fossil fuels but also cuts the overall total amount of
carbon dioxide that would have been produced if both the fossil
fuels and the processed waste alternatives had been burned.