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Firms advised to cut climate change levy by going green.

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The jury is still out on the effects of the climate change levy, according to Bruce Epsley, deputy president of CIMA. Speaking at a climate change levy seminar held by CIMA and the Energy Efficiency Best Practice Programme, he warned that it will be a year or two before we know whether or not it has worked.

Although the levy, which comes into effect in April, has been billed as a "levy with a purpose", many accuse it of being just another tax. It is paid by all UK businesses and public-sector organisations via their energy bills, and the full rates will be 0.43p/kWh for electricity, 0.15p/kWh for gas, 1.17p/kg for coal, and 0.96p/kg for liquid petroleum gas (LPG).

"Climate change is a real phenomenon, and it's getting worse," said David Vincent, divisional manager and director of the programme. "Under the Kyoto agreement, the UK is committed to cutting greenhouse gas emissions by 12.5 per cent on 1990 levels by 2008; but our real goal is to move towards a 20 per cent cut by 2010 and a 60 per cent cut by 2050. We need to work hard to achieve this, and we need the help of businesses."

He argued that businesses waste 15 to 20 per cent of their energy and energy efficiencies will, therefore, save them money. But this saving is likely to be swallowed up by levy charges. While companies that meet targets can get an 80 per cent reduction...

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