To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the impact on carbon dioxide emissions of (a) an exemption from the climate change levy of fuel used in dual-use purposes and (b) extending relief to certain processes which compete with those benefiting from the dual-use or non-fuel use exemptions; and if she will make a statement.
I have been asked to reply.
The exemption from the climate change levy for fuel used in dual-use purposes has been part of the design of the levy since it was launched in April 2001. Consequently this exemption has been taken into account in all estimates made of carbon savings from the levy.
The proposal to extend relief to certain processes which compete with those benefiting from the dual-use or non-fuel use exemptions is not expected to have a significant effect on carbon savings. Most of the processes eligible for this further relief are covered by a negotiated agreement with DEFRA, under which the operators have agreed to energy efficiency targets. However, the exemption will give a further incentive to recycling processes which are more environmentally friendly than the alternative primary production processes.