Business energy users who only emit small amounts of carbon are to be made exempt from the requirements of the Emissions Trading Scheme (ETS), the government has confirmed.
It was stated by the Department of Energy and Climate Change that smaller firms will be able to opt out of the European initiative, which is designed to encourage companies to make their operations more environmentally friendly.
The move is part of a drive by the government to cut down on red tape and is estimated to save businesses up to £80 million between 2012 and 2020.
Climate change minister Greg Barker said: "We have worked closely with industry looking at their needs in order to develop and design a policy which genuinely saves companies money and time, while still ensuring we meet environmental goals."
The decision was welcomed by Laura Cohen of the British Ceramic Confederation, who said it will reduce the administrative burden for small firms and enable companies to consider the best options for their circumstances.
It is part of the government's Red Tape Challenge, which encourages businesses and individuals to identify unnecessary pieces of bureaucracy that are damaging the country's economy.
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