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It is a levy on the energy used by businesses and is charged on every unit (kWh) of energy consumed.
As part of the Kyoto Protocol, governments around the world have agreed targets for reducing greenhouse gas emissions. The UK Government has set itself a challenging target to reduce emissions in this country by 20 per cent by 2010. Businesses have a major part to play in helping to achieve this target and the Climate Change Levy has been introduced to encourage them to reduce energy consumption.