Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

Review of business energy tax

The 21st Session of the Conference of the Parties to the UN Framework Agreement on Climate Change will take place 30th November to 11th December in Paris. 

COP21, or Paris 2015 as it is more commonly known, will be a crucial conference in that it needs to achieve a new international agreement on the climate with the aim of keeping global warming below 2°C.

During Paris 2015 it is expected that more information will emerge on the UK government’s plans to reform the business energy efficiency tax landscape.  The reforms will affect all businesses involved in current Climate Change Levy Agreement Schemes and the Carbon Reduction Commitment Scheme.

The government announced the review at the Summer Budget when it began reviewing evidence on the operation of the existing schemes, looking at lessons learned from schemes overseas, and engaging with a wide range of businesses, academics and other bodies to inform the consultation process.

The aim is to set out policy proposals to ‘simplify and improve the effectiveness of the landscape supporting the government’s objectives around simplicity, productivity, security of energy supplies and decarbonisation’.

In September the Government published its consultation paper on the reforms and says it is likely to publish its formal response at Budget 2016.