Climate change

Environmental taxes

duckling on dry, cracked earth

Dried up pond at Suining, Southwest China. © Reuters/Corbis.

What effect is our way of life having on our climate?

Together how can HM Revenue & Customs and big business help?

One way to help our climate is through environmental taxes, which aim to change our behaviour.

Climate Change Levy is one of these environmental taxes. Big business is charged this duty on their use of electricity, gas and solid fuel, to encourage them to use renewable energy (wind, tide, water and sun).

A small percentage of the money from the Climate Change Levy helps fund the Carbon Trust. The objectives of the Carbon Trust are to help companies cut their carbon footprint (or CO2). They also support low carbon emissions technologies (such as energy saving light bulbs and efficient heating systems), which benefit the planet.