Managing Your Climate Change Levy Targets Printer friendly pdf of this page Your 2002 Target Your company needs to meet its Climate Change Levy Agreement Target towards the end of 2002. Failure to meet the target will result in your company losing its 80% discount on the Climate Change Levy (CCL), which would add approximately an extra 8-12% to your fuel bills over the next two years. Companies can meet their targets through any combination of: internal energy saving measures (although it is almost certainly too late for this to affect your 2002 position) buying allowances in the emissions trading scheme Many companies, without further action, will not meet their targets. The potential cost of losing the CCL discount means that meeting your target is essential -thus the risk of not meeting it needs careful analysis and management. The Environment Business are experts in this area and can help your company. Alternatively, if you are confident your company can meet or beat its target, you have three options: use the overachievement to help meet future targets sell the overachievement to other companies do nothing and miss out on the above benefits The Environment Business can help you maximise the value from your overachievement. The Environment Business - Expert Emissions Management Advice By converting your energy consumption into tonnes of carbon dioxide equivalent (tCO2e), you can make use of the emissions trading market to meet your target cost-effectively. However, many companies' understanding of the risks and opportunities associated with this new market could be improved. Whether you are a potential buyer or seller of greenhouse gas allowances, whether you are confident of meeting your target or not, The Environment Business can help you to appreciate and consider the options available to you. We can offer advice on: Developing compliance scenarios A thorough understanding of your emissions profile and its future evolution are the basis of planning. In the face of uncertain market conditions and risks to compliance (such as technology underperformance and inadequacies in data collection) contingency plans are crucial. We can help you develop and think through different potential scenarios in order to plan the best responses to unforeseen circumstances. Formulating an emissions trading strategy How do you view trading - failsafe or opportunity? Once expectations of your emissions profile have been established through your scenarios, an enhanced understanding of the likely benefits and risks of trading for your company can be formed. We can help develop a strategy for hedging against the risks identified and offer advice on the likely outcomes of both actively and passively engaging in trading. Developing a decision process Knowing when to act is half the battle. We can help you to support decision-making by identifying the conditions which should act as prompts for action, and to develop safety mechanisms. The Environment Business is especially well-placed to offer advice on emissions management. We have been active from the outset in the Emissions Trading Group, the group of companies set up to advise the government on the design of the UK Emissions Trading Scheme. The Environment Business currently advises the largest CCL Agreement sector association on the above issues and helps a number of major greenhouse gas emitters develop logical approaches to their emissions strategies. To Find Out More ... Please contact Laurence Smith or Helen Johns at The Environment Business if you would like further information. Printer friendly pdf of this page