Press Release: Commission authorises the climate change levy rebate for the agriculture sector in the UK

The European Commission on 20 July 2005 decided to authorise the United Kingdom (UK) to grant the agriculture sector a tax rebate of €687 million over a period of 10 years. The rebate on the climate change levy of 50% for horticulture and 80% for agriculture sectors covered by Integrated Pollution Prevention and Control (IPPC) agreements allows UK agriculture to accommodate higher energy prices caused by the levy while helping to meet the CO2 reduction targets for the UK and for Europe. In 2001, the UK had introduced a climate change levy on the non-domestic use of energy in order to meet the Kyoto targets.