Climate Change Agreements
The NFU entered into an umbrella agreement with the Secretary of State on behalf of the pig industry. It is currently administered by the Farm Energy Centre (FEC) at Stoneleigh and targets are set until 2013 for registered facilities. Further registrations will be allowed in the future for another term of the agreement.
Registered facilities may receive a discount of up to 80% on their Climate Change Levy if they meet energy efficiency or carbon saving targets.
Efficiency is measured by the amount of energy used to produce 1 kg of pig meat. Registered facilities can still meet targets while their overall energy consumption increases, provided their productivity (and therefore efficiency) increases to a greater degree.
To receive the levy discount, registered facilities carry out a self-audit of energy consumed on-farm. Energy consumption from renewable sources is deducted to reach a figure for energy from levied sources such as grid electricity, natural gas and LPG.
FEC then validate the data to confirm the agreed targets have been achieved. If the Department of Energy & Climate Change (DECC) agree, the registered facility is included on the Reduced Rate Certificate for the sector and receives the levy discount.
DECC may carry out their own audit of facilities to check the validation process.
Failure to meet targets can be offset by purchasing Carbon Credits under the Emissions Trading Scheme .
Click here for information on renewable energy.