Brussels, 20/07/2005 (Agence Europe) - On Wednesday, the European Commission allowed the United Kingdom to grant the agricultural sector a tax cut of 687 million EUR over a period of 10 years. The reduction in the tax on climate change at a level of 50% for horticulture and 80% for the agricultural sectors covered by the Integrated Pollution Prevention and Control Agreements (IPPC) gives agriculture in the United Kingdom time to adapt to an increase in energy prices resulting from the tax, whilst helping towards the carbon dioxide reduction objectives set for the United Kingdom and for Europe.
In 2001, the United Kingdom brought in a tax on climate change applicable to the consumption of energy for non-domestic use, in order to achieve the Kyoto objectives. The large energy-consuming industries were granted a considerable reduction of 80% over a period of 10 years, in order to adapt to the new environment, improve energy efficiency and reduce their carbon dioxide emissions. The agricultural sectors concerned by Wednesday's decision (pork and poultry, foodstuffs and drinks) have concluded Integrated Pollution Prevention and Control Agreements (IPPC) and have taken commitments in terms of the reduction of emissions and increased energy efficiency. The United Kingdom will scrupulously ensure that the commitments made will be respected. The agreements are re-examined periodically. An additional special measure providing for a reduction of 50% over five years will allow the horticulture sector to compensate for a loss of international competitiveness related to the introduction of the tax on climate change.