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Agreement to Extend Energy Efficiency Targets

UK Energy Intensive Industries

Improvements are expected to increase energy efficiency by 11% across all sectors.

The Government and British Energy Intensive Industries (EIIs) have agreed to extend energy-efficiency targets to 2020, as part of the voluntary Climate Change Agreements scheme that provides an extension to the Climate Change Levy.

The Climate Change Levy provides a rebate for industries until 2023 if they meet energy efficiency improvements targets. Under the new agreement CCL discount for electricity will increase from 65% to 90%. The Department of Climate Change (DECC) estimates these energy efficiency improvements will lead to a 100TWH reduction in energy consumption and reduce CO2 emissions by 19 million tonnes.

Greg Barker, Minister for Climate Change, said:

“I am really impressed by the commitment shown by the UK Energy Intensive Industry to improving their competitiveness and energy efficiency. This partnership with Government demonstrates our commitment to growth”

A total of 9000 industrial sites across 51 sectors are covered by The CCA scheme, and if they implement the energy efficiency improvements – such as, energy efficient boilers, improved energy management systems and process optimisation – they could secure savings on Climate Change Levy costs worth around £300m a year.


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