The Climate Change Levy and Climate Change Agreements.

The purpose of this report, which was prepared by the National Audit Office for the House of Commons Environment Audit Committee, is to understand and consider

• new results from the Agreements, as reported in Summer 2007;
• the effectiveness of these two policies as a whole (CCA and CCL); and
• their future role in combating climate change.

The report concludes that while the levy and CCAs have been effective in encouraging businesses to improve their energy efficiency, they have delivered fewer emissions cuts than anticipated. It estimates that by 2010, the levy will have delivered emissions savings of 3.5MtC, while the CCAs will have delivered only 1.9MtC. In 2004, the targets under the CCAs had been tightened so they would deliver 2.9MtC. The NAO urges the EAC to look into tightening the targets for the final period of the agreements.