DAIRY ENERGY SAVINGS DISAPPOINTED AT INCREASE IN GOVERNMENT CARBON TAX
The dairy sector is disappointed about government plans to cut the rate of relief from the Climate Change Levy from 80% to 65%. The announcement appeared in the small print of yesterday’s Pre Budget Report and stands to cost dairy companies about £1m per year from 1 April, 2011.
Dairy Energy Savings Chairman, Gerry Sweeney said: “The dairy industry has worked hard over the last 10 years to save over 130,000 tonnes of carbon from entering the atmosphere.
“We are therefore disappointed that the Chancellor has decided to reduce relief on the Climate Change Levy from 80% to 65%. As the Copenhagen summit puts the spotlight firmly on climate change it is extraordinary that the UK government is mixing its messages and reducing fiscal incentives for action.
“Dairy foods form a hugely popular part of the nation’s diet, are now responsible for less than 3% of UK emissions. Our industry also remains committed to the raft of ambitious environmental measures set out in the Milk Roadmap.”
• Dairy Energy Savings is a wholly owned subsidiary of Dairy UK, a trade association that represents the interests of dairy farmers, producer coops, milk processors and doorstep deliverymen. For more information visit www.dairyUK.org
• DES administers the Climate Change Agreement with the dairy sector on behalf of dairy processors.
• There are 106 major UK dairy production sites registered in the sector’s Climate Change Agreement. Some 65% passed the last CCA milestone target without needing to buy in carbon allowances. As a whole, the sector has met its target during each year of the scheme.
• The CCA with industry stipulates an 80% rebate on the government’s Climate Change Levy for industries that meet targets on carbon emissions and energy use. In the dairy sector, the carbon savings required to qualify for the rebate have been met and exceeded at each ‘milestone’ period.
• The Liquid Milk Roadmap was produced by the Sustainable Consumption Taskforce of the Dairy Supply Chain Forum, with backing from Dairy UK, Defra and the NFU. It sets out a wide range of environmental measures to reduce water use, energy use, waste and recycling. Targets are set for 2010, 2015 and 2020 and have been differentiated to apply to dairy farmers, processors and retailers. For more, see www.dairyUK.org
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