Agency questions UK climate change levy

International energy agency recommends focus on carbon emissions, extension to households

The International energy agency (IEA) has criticised the design of Britain's industrial energy tax, the climate change levy, in a review of the country's energy policies. If the levy is to play its full part in helping to cut carbon dioxide (CO2) emissions then it should be extended to households and be based on the carbon content of fuels rather than their energy content, says the agency.

The recommendation comes shortly after rumours of just such a switch in the levy to focus on carbon emissions were scotched by the government, which insisted that the levy was always intended to be a broad-based energy tax (EED 11/10/02).

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