This briefing responds to a request from the Environmental Audit Committee. In April 2006 the National Audit Office published a briefing for the Environmental Audit Committee on UK climate change policy. This work was produced to inform and assist the Committee’s further work on climate change, and set out options for further Committee scrutiny. After discussion of the briefing in June and July 2006, the Committee signalled that one of the areas it wished to study in more detail was the effectiveness of the Climate Change Levy (‘the Levy’) and Climate Change Agreements (‘the Agreements’).
The aim of this briefing is to help the Committee understand and consider: new results from the Agreements, as reported in Summer 2007; the effectiveness of these two policies as a whole; and their future role in combating climate change.
To this end we reviewed the existing econometric, qualitative and reported evidence on the effectiveness of the Levy and Agreements, and in early 2007 conducted a new survey of 40 businesses and thirteen industrial sector associations.