Britain's eco-tax exemptions pass EU state aid test

  • 28/03/2001

Plans by Britain to exempt greener energies from a new ecological tax do not breach EU rules on state aid, the European Commission said yesterday. Britain's so-called climate change levy which comes into force in April is a tax on the industrial consumption of energy. The policy is aimed at improving energy efficiency and reducing the "greenhouse gases" blamed for global warming, but some sectors will be exempt or enjoy a reduced rate.