The Spring Finance Bill 2023 reflects the March 2023 budget and will impact the climate change levy regime, once it receives assent and becomes an Act.
This legislation will apply across the UK.
What will change?
The spring budget announced that the climate change agreement scheme will be extended for a further two years until 31 March 2027. This was not included in the Spring Finance Bill 2023 and is expected to be covered by future legislation.
Rates of Levy
Rates of climate change levy will be set from 1 April 2024. The rates of levy in 2022, 2023 and 2024 are set out below.
April 2022
April 2023
April 2024
Units
Electricity
0.775
p/kWh
Natural Gas
0.568
0.672
LPG
2.175
p/kg
Any other taxable commodity
4.449
5.258
6.064
Reduced Rates for Holders of Climate Change Agreements (CCAs)
CCAs are available to certain energy intensive sectors. Participation currently provides levy reductions. The rates of levy reduction will increase for ‘other taxable commodities’ from 1 April 2024.
Levy Reduction for Consumption subject to a CCA
1 April 2022
1 April 2023
1 April 2024
92%
86%
88%
LPG or other hydrocarbon gas
77%
89%
New publications this month:
FOREIGN, COMMONWEALTH AND DEVELOPMENT OFFICE (FCDO)
Windsor Framework
On 24 March 2023 the Windsor Framework was formally agreed between the UK and EU. This reflects a successful vote in the House of Commons concerning the ‘Stormont Brake’ mechanism. The ‘Stormont Brake’, will allow the UK Government to veto new EU rules from applying in Northern Ireland. This veto may be challenged through independent arbitration mechanisms.
The framework will establish two routes for goods imported to Northern Ireland from Great Britain:
CLIMATE CHANGE COMMITTEE (CCC)
Progress in adapting to climate change – 2023 Report to Parliament
This report assesses the UK’s progress in adapting to climate change between 2018 and 2023. The key findings follow three themes:
Committee on Climate Change 2022 progress report: government response
A government response to the CCC’s 2022 annual report on progress in reducing UK emissions has been published. This ties in with the Powering Up Britain: Net Zero Delivery Plan.
DEPARTMENT FOR ENERGY SECURITY AND NET ZERO
Powering up Britain
The government’s Powering Up Britain strategy sets out planned policies and targets to deliver energy security and net zero. Policies include:
Responding to the Independent Review of Net Zero’s Recommendations
A government response to the 2022 independent review of net zero has been published.
UK Net Zero Research and Innovation Framework: Delivery Plan 2022 to 2025
This plan describes the current portfolio of government net zero research and innovation programmes.
Floating Offshore Wind Manufacturing Investment Scheme
This scheme supports the delivery of port infrastructure in order to facilitate floating offshore wind.
Annual statement of emissions for 2021
This statement concerns emissions during 2021 and has been prepared to discharge obligations under the Climate Change Act 2008.
Carbon Budget Delivery Plan
Proposals and policies to deliver carbon budgets four through six under the Climate Change Act 2008 are set out in this document.
ENVIRONMENT AGENCY, NATURAL RESOURCES WALES, DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS (DEFRA) AND WELSH GOVERNMENT
Medium Combustion Plant and Specified Generators
Significant changes were made to the permit application process and guidance on monitoring for medium combustion plant and specified generators during March 2023. Updated forms are below.
Significantly, the application process is now open for ‘existing’ medium combustion plant in England (plant commissioned before 20 December 2018). Operators of medium combustion plant with a thermal input of 5MWth or greater must apply for a medium combustion plant permit and receive this by 1 January 2024.
Smaller medium combustion plants (between 1MWth to 5MWth) must hold a permit by 1 January 2029.
Updated standard rules permits have been published for medium combustion plant and specified generators:
DEPARTMENT FOR ENERGY SECURITY AND NET ZERO, DEFRA AND FCDO
UK International Climate Finance Strategy
This strategy provides details of how the £11.6 billion allocated for international climate finance is being spent in the years 2021 to 2026. Priority areas for action are identified.
2030 Strategic framework for international climate and nature action
This document states how the UK plans to deliver internationally on its climate change and nature goals in the decade to 2030.
DEPARTMENT FOR ENERGY SECURITY AND NET ZERO, DEFRA, HM TREASURY AND DEPARTMENT FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY (BEIS)
Mobilising green investment: 2023 green finance strategy
An updated version of the UK’s green finance strategy has been published.
DEFRA
Nature markets
This policy paper sets out a framework to increase private investment in nature recovery and sustainable farming.
Local nature recovery strategy: what to include
Guidance is provided to responsible authorities on what must be included in local nature recovery strategies.
HM REVENUE AND CUSTOMS
Climate Change Levy force of law guidance
This guidance has force of law under legislation implementing the Climate Change Levy. Matters covered include completing returns, paying the levy, registering for the levy, claiming reliefs and keeping accounting documents.
ENVIRONMENT AGENCY AND DEFRA
Air emissions risk assessment for your environmental permit
The PM 2.5 limit under the Air Quality Standards Regulations 2010 was reduced from 25 micrograms per cubic metre to 20 micrograms per cubic metre.
Register or renew waste exemptions
This guidance has been updated to reflect that exempt waste operations may not be undertaken or registered at installations subject to an environmental permit.
Extended producer responsibility for packaging: who is affected and what to do
This guidance has been updated to reflect legislation implementing the extended producer responsibility is now in force.
Packaging data: what to collect for extended producer responsibility
This guidance has been updated.
Bans on F gas in new products and equipment: current and future
Guidance has been added on F gases that produce trifluoromethane as a by-product.
ENVIRONMENT AGENCY
Abstraction and impounding activities: assessing licence compliance
Guidance is provided on how water abstraction and impounding licence compliance is assessed and categorised.
Water supply reservoirs: their role in flood risk management
This new framework aims to help determine which water supply reservoirs can supply flood risk management benefits.
Water abstraction during prolonged dry weather and drought
This guidance applies in England. The position on refilling winter storage reservoirs beyond the end of the winter abstraction season (31 March in each year) is confirmed.
Standard Rules Permits
In addition to the revised standard rules permits for medium combustion plant and specified generators, the following standard rules permits were updated or published in March 2023:
Regulatory Position Statements (RPSs):
One RPS was updated in March 2023: Segregating waste upholstered domestic seating that may contain POPs at HWRCs: RPS 266. This was extended to include waste from bulky waste collection services from households.
SCOTTISH GOVERNMENT
Climate loss and damage: practical action
This report collects views and analyses of practical action to address climate loss and damage.
A Trading Nation – framework to grow Scotland's renewables exports
This framework outlines how the Scottish Government plans to facilitate the expansion of Scottish renewables exports.
Local air quality management: policy guidance
This guidance for local authorities in Scotland has been updated to reflect changes to legislation and requirements.
Energy Performance Certificates (EPCs): introduction
This updated guidance provides an introduction to EPCs.
Energy Performance Certificates (EPCs) for new dwellings and non-domestic buildings: guidance
Guidance has been published on when EPCs are required and who can prepare them.
Arrest warrant for convicted waste offender
A warrant is out for the arrest of a waste offender, who was convicted in his absence after failing to appear at court.
The man had been living in a caravan on a farm near Moreton-in-Marsh and operating a commercial skip business from this location. Activities undertaken without an appropriate environmental permit included depositing skips full of waste; sorting, storing and burning waste; and removing waste for onward disposal. The site lies close to protected habitat sites and landscapes.
Three waste exemptions were registered to the site in 2021.
Environment Agency officers visited the site in May 2021, following reports of burning waste, and to check compliance with permit exemptions that had recently been registered. The officers observed vehicles and machinery consistent with the running of a skip hire business; several empty and full skips; and piles of mixed waste, including household, construction and demolition waste, furniture, metal, wood and soil. Two piles of waste were still smouldering from recent fires.
The man was told on multiple occasions that all waste activity must stop immediately and that the site should be cleared. Environment Agency officers made further visits to check on progress, and it became apparent that the defendant was continuing to operate an unpermitted waste transfer site. Burning waste continued, which on more than one occasion resulted in the fire service attending.
In November 2021, the Environment Agency served a notice requiring the man to clear the waste from the site, but he did not comply and his activity continued. The Environment Agency then took the man to court, resulting in his conviction. A warrant is now out for the man’s arrest with no bail.
Breaches
The man was convicted of breaching the Environmental Permitting (England and Wales) Regulations 2016 and Environmental Protection Act 1990, by:
Housing developer paying for illegal waste activity in Northumberland
Bellway Homes Limited has been found to have dumped contaminated waste soil containing wood, metal, wire cables, rubber, plastic and vehicle tyres on a housing development site near Stannington.
Between 22 November and 12 December 2017, around 2,688 cubic metres of contaminated waste soil was imported from another nearby development. It was said this was imported to build a soil bund around an attenuation pond: an artificial pond created to catch excess rainwater.
In February 2019, an Environment Agency officer attended the site after receiving a report of illegal waste activity. An enforcement notice was subsequently issued, meaning the waste had to be removed from the pond area. The waste was moved to another area of the site and then to a permitted waste facility for disposal during July and August 2020.
Bellway Homes said its consultants had told them it was allowed to import the soil without any authorisation, which is not correct.
In response to the breach, the company submitted an Enforcement Undertaking to the Environment Agency, which has now been accepted.
Enforcement Undertaking
An Enforcement Undertaking is a voluntary offer made by companies and individuals to make amends for their offending, and usually includes a donation to an environmental charity to carry out improvements in the local area.
Bellway Homes will pay £50,000 to Northumberland Wildlife Trust, £30,000 to Wear Rivers Trust and £20,000 to Tyne Rivers Trust.
As part of the Enforcement Undertaking requirements Bellway Homes must improve awareness of the law in relation to soils and waste and review protocols to prevent future issues.
Six-figure payment by food manufacturer following ammonia discharge in Shropshire
Shropshire Wildlife Trust has received £100,0000 after the Environment Agency accepted an enforcement undertaking offer from Müller UK & Ireland Group LLP.
Elevated levels of ammoniacal nitrogen were discharged from the Müller Dairy facility in Market Drayton, Shropshire for a 15 day period during January 2018. The issue was traced to the bypassing of an inlet screen during maintenance works. This led to large pieces of fruit passing into the effluent treatment plant, leading to high levels of ammonia in the treated effluent discharged into the River Tern.
Müller has since complied with the regulations and invested £2 million in improvements to environmental working practices.
Müller was charged with three breaches of Regulation 38(2) to the Environmental Permitting (England and Wales) Regulations 2016:
As well as a donation totalling £100,000 to the Shropshire Wildlife Trust, Müller UK & Ireland Group LLP has made significant improvements to its effluent-treatment plants and staff training.
The company also paid the Environment Agency’s administration, investigation and legal costs.
