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Dept of the Environment Transport and the Regions

Answer

Mr. Nicholas Winterton: To ask the Secretary of State for the Environment, Transport and the Regions what proportion of the proposed climate change levy he plans to redirect to develop energy efficiency measures with particular emphasis on small to medium sized enterprises; and what plans he has to extend the option for negotiating tradeable permits. [83704] Mr. Meale: In his Budget Statement on 9 March 1999, Official Report, columns 173-190, the Chancellor announced as part of the climate change levy £50 million per annum package to fund schemes aimed at promoting energy efficiency directly including energy efficiency audits/advice, mechanisms to promote low carbon technologies, and additional support for renewable sources of energy. Further details will be set out in the draft UK climate change programme later this year. The Government recognise that SMEs are a key part of the economy with special needs. They have already therefore designed specific schemes and programmes to help them save energy and money and, importantly from our point of view, do their bit to reduce greenhouse gas emissions. My Department's Energy Efficiency Best Practice programme provides independent advice and information on energy efficiency and support for RD&D projects. Non-domestic energy users including SMEs are an important target audience for the programme. The Department also funds grant schemes specifically for SMEs delivered through the Energy Saving Trust. The experience gained from the Energy Efficiency Best practice programme will provide a good basis for developing further energy efficiency schemes as part of the £50 million per annum package. On tradeable carbon permits, the Government fully recognise the potential benefits of a carbon emissions trading scheme, particularly in allowing business to deliver greenhouse gas reductions in a cost effective way, and in preparing business and the City for the international emissions trading scheme to be established under the Kyoto Protocol. We also see carbon emissions trading as potentially having a complementary role alongside the climate change levy. We are therefore taking forward the recommendation made by Lord Marshall in his report on "Economic Instruments and the Business Use of Energy", by working with the CBI and ACBE (the Government's Advisory Committee on Business and the Environment) to develop a pilot trading scheme.

Secondary information

Type

Written question

Reference

83704; 331 c153-4W

Session

1998-99

Subjects

Climate Carbon Environment protection Energy Pollution control Small businesses Taxation Energy Saving Trust

Contains statistics

Yes