The NFU and the Department for Energy and Climate Change (DECC) have agreed a new Climate Change Levy (CCL) target for the horticulture sector at the next scheme milestone in 2010.

The existing target of a 12 per cent energy efficiency improvement was negotiated by the NFU when protected horticulture businesses first became eligible for 80 per cent CCL discount.

Under the terms of the legal agreement with government, DECC was entitled to propose new targets for all CCL qualifying sectors based on their previous performance.

Horticulture has been particularly successful in saving energy and meeting its CCL targets - for example, at the last milestone in 2006 the sector achieved energy efficiency savings in excess of 18 per cent. With this in mind DECC suggested the existing target was no longer realistic and a new more stringent target should be set.

Dr Chris Hartfield, NFU horticultural advisor, said: “We have argued that many growers have made significant improvements in energy efficiency that can’t be repeated, by using technology like thermal screens, for example.

“Bearing in mind the tough trading conditions being faced by many growers the new target is challenging but realistic. The information we have got from our CCL members suggests that further savings can still be made so we are confident that growers will continue to rise to the challenge of saving energy and money.”

DECC’s initial proposal was for the new 2010 target to be set at 28 per cent. However, following detailed evidence submissions by the NFU, a more realistic figure of 20 per cent has been negotiated.

The outcome of the negotiations shows that growers are benefiting from the good relationship that has been built between the NFU and DECC, and that the reliable data provided by CCL scheme members means realistic targets have been set.

CCL scheme participants will be notified shortly regarding the exact implications of the new targets for their particular business.

The new Department for Energy and Climate Change (DECC) took over the running of the CCL scheme from Defra when it was formed in November 2008.