Increasing global temperatures is one
One of the most pressing issues of our time is climate change. While scientists continue to debate what causes this phenomenon, there are a few things that we can all agree upon. Increasing global temperatures is one, changing the earths atmosphere is another. While no single factor is responsible for climate change, it is being felt all the same, and that is why people need to start thinking about ways that they can help.
The Climate Change Levy is simply an environmental tax placed on the electricity that most businesses use. It s designed as a stimulus plan to help companies to become more energy efficient and also helping to lower their overall carbon emissions. This is not only good for the environment, but also for business owners who may find it easier to increase their profit levels as businesses become more energy-efficient. The idea behind placing a Climate Change Levy on businesses is that this will force them to think about how they use energy, both at the office and at home.
Businesses which operate at more than one premises
As part of the UK government’s Carbon Pollution Reduction Scheme (CPRS), businesses are assessed on their level of carbon emission. The CPRS assesses three main rates: home electricity efficiency, business energy efficiency, and gas and coal consumption. Businesses which exceed the rate of carbon emission set by the scheme are assessed with a higher cost, meaning that if they wish to claim rebates for their carbon emissions, they will need to have increased energy efficiency at their head offices. Those who fall within the recommended level of energy efficiency, but whose homes do not, will receive cheaper energy tariffs. Businesses which operate at more than one premises will also get extra money off their main rates for up to three years.
There are a number of ways that businesses can help to reduce greenhouse gas emissions, and the Climate Change Levy works by allowing businesses to help the environment whilst still being able to make a profit. This can be a difficult task as most companies do not want to see their budgets reduced. However, the amount of carbon dioxide released from power stations and other industrial production is outstripping the amount that can be replaced by renewable energy sources such as the wind, the sun, and the waves. If the amount of greenhouse gases is to be reduced drastically, it is vital that all businesses and organisations offer something back to the environment in the form of a Climate Change Levy. The main types of Climate Change Levy are fixed and variable rate structures.
non-compliance can be extremely high
For businesses and organisations, the Climate Change Levy can come in the form of a flat rate. In a fixed rate climate change levy, a company will receive a certain amount of money every year until the set date. With a variable rate system, a company will only receive a certain amount of money each year, until the cap is reached. These taxes are based on the domestic consumers’ energy usage, rather than on the company’s emissions or electricity consumption. The idea behind this type of climate change levy is to force domestic consumers to pay a higher rate than companies and organisations that produce a much higher rate of carbon emissions.
If a country cannot reach its carbon emission reduction target by a certain date, the penalties for non-compliance can be extremely high. As many governments and international organisations are now involved in trying to keep global temperatures at a stable level, a Climate Change Agreement will have an enormous positive impact not only on global citizens but also on the economy. When the global economy recovers from recession, the knowledge of a world leader in climate change efficiency and how to reduce emissions will go a long way in ensuring that the recession is not seen as an opportunity for the rest of the world.