This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
(This note is not part of the Regulations)
These Regulations extend the scheme providing for a reduced rate of Climate Change Levy until 31st March 2027. Part IV of Schedule 6 to the Finance Act 2000 makes provision for a reduced rate of Climate Change Levy to be charged if a facility which receives supplies of energy is certified as being covered by a Climate Change Agreement for a certification period.
Regulation 2 amends the Climate Change Agreements (Administration) Regulations 2012 (S.I. 2012/1976) to provide for a new target period from 1st January 2024 to 31st December 2024 (“target period 6”). During a target period, a facility must meet targets for energy use or emissions which are specified in a Climate Change Agreement in order to be eligible for a reduced rate of Climate Change Levy. If a facility does not meet any target for a target period, it may pay a buy-out fee on each tonne of carbon dioxide equivalent by which it falls short of meeting that target. If a facility overachieves against a target, there will be a surplus, being the amount by which the reduction in emissions has exceeded the target.
Regulation 2 also amends the terms to be included in Climate Change Agreement to increase the buy-out fee. Regulation 2 also amends the terms to be included in an underlying agreement to require operators to provide information, where requested by the administrator, in relation to energy efficiency improvements or emissions reductions action taken to meet the target.
Amendments are also made to the financial penalty provisions to increase the amount of the financial penalty that may be imposed and to enable the administrator to impose a lower amount, if it considers appropriate. Amendments are made to require the administrator to publish certain information about the financial penalties that it imposes and to enable the administrator to withdraw a financial penalty, reduce the penalty amount or allow additional time for payment of the penalty. Amendments also widen the circumstances in which the administrator may terminate an underlying agreement.
Regulation 3 amends the Climate Change Agreements (Eligible Facilities) Regulations 2012 (S.I. 2012/2999) to extend the scheme until 31st March 2027.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.
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