Climate Change Levy

The Climate Change Levy, which takes effect in the UK on 1 st April, 2001, is considered. The Levy was conceived as a measure to encourage industry to cut carbon dioxide emissions. Industry claims that the measure is ill-thought out, unfair and could even be counterproductive. The opposing views are discussed. Data are presented on the effect of the Levy on the costs of the worst-hit sectors, including plastic products, recycling (non-metal), rubber products, automotive, fabricated metal products and aeronautics. 

Packaging Waste Directive Contaminated Land Groundwater Regulations Climate Change Levy... 

HM Customs and Excise, Notice CCLl, A general guide to the climate change levy. The Stationery Office, London (2002) www.hmce.gov.uk/forms/notices/ccll... 

Fiscal instruments have more recently begun to emerge as market based forces focus on environmental improvements through taxes and levies such as the landfill tax introduced in 1996, and the Climate Change Levy that came into effect on 1 April 2001. 

The construction industry, as a major part of the economy in the UK and elsewhere, has a significant impact on the environment. An estimated 198000 companies of all sizes make up the industry, with an annual output of 58 billion. The industry produces 29% of the controlled waste in the UK (70 million tonnes annually), of which 12 to 15 million tonnes are currently recycled. About 17% of waste going to landfill sites is directly related to construction work. Good management of the environment makes economic sense because many of the environmental aspects of construction work carry financial cost. Examples are energy use and waste, where taxation on landfill and a proposed climate change levy will add to costs. 

Levis, S., Foley,. A., and Pollard, D. (1999b). Potential high-latitude vegetation feedbacks on CO,-induced climate change. Geophys. Res. Lett. 26, 747-750. 

For a cap 20% below 2005 emissions by 2020 for developed countries, IMERS annual contribution from 2013 onwards would be at least 2.5 billion for adaptation to climate change in developing countries and 1 billion for improved shipping technology. In principle, IMERS could be implemented as an emissions trading scheme rather than a levy, with fuel payers remitting the... 

Foley J. A., Levis, S., Prentice, I. C., Pollard, D., and Thompson, S. L. (1998). Coupling dynamic models of climate and vegetation. Global Change Biol. 4, 561-579. 

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