Industry also fears that clearance may be given for only five years, with a declining rate of rebate after that. Industry will have to commit itself to reducing CO 2 emissions without knowing if reliance can be made on the purchase of permits. Industry is also concerned to ensure that there is legal certainty that compliance with an agreement will be deemed to be compliance with the energy efficiency requirements of IPPC control, avoiding dual control. How this will be achieved has yet to be determined. Some flexibility does exist, since provision is made for variation of targets throughout the life of the agreement, but since provision is made for variation of targets throughout the life of the agreement, but the circumstances triggering a variation are limited and much will depend on the discretion of the Secretary of State.
Variation also provides the opportunity for targets to become more onerous.
They will have to pay the tax at the full rate and will almost certainly pass it on to their customers.