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Energy markets are part of the dramatic changes that are taking place in global environmental markets that have led to an increased legislative burden on businesses: the former to provide a framework for the deregulated market place and the latter to increasingly make companies and individuals aware of their responsibility to reduce greenhouse gases.

This legislative burden is increasing.

The Climate Change Levy (CCL) has been imposed on energy intensive businesses in an attempt to meet the EU targets for the reduction of atmospheric carbon dioxide. Entering a CCL scheme entitles the business to a rebate of up to 80% on the levy, provided that set targets for reducing energy use are achieved. Synergen currently manages the CCL responsibilities for clients within the qualifying industry sectors.

The Carbon Reduction Commitment or CRC is due to come into force this year in the Climate Change bill. Under this legislation it will become mandatory for all businesses in the UK with annual half-hourly metered electricity usage over 6,000 MWh to join a cap and trade scheme and report their emissions to the government.

Carbon (or emission) trading is a means of controlling pollution by providing an economic incentive to reduce emissions. The European Union Emissions Trading System (EU ETS) is the largest multi-national emissions trading scheme in the world. The scheme is now in its 2nd Trading Period and this will last until December 2012; when, for the 3rd trading period the proposed changes to the scheme will come into effect.

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