Climate Change Levy
The Climate Change Levy (CCL) came into effect in 2001 to encourage improved energy efficiency and reduced greenhouse gas emissions
Rates of the levy can be found on the HM Revenue & Customs website.
The levy does not apply to the domestic, transport or energy sectors or to selected energy sources such as renewable electricity.
Climate Change Agreements
To help energy-intensive organisations, the Government has negotiated Climate Change Agreements (CCAs) in some sectors. These agreements give organisations an 80% discount from the Climate Change Levy, as long as they reach additional Carbon Dioxide (CO2) reduction targets.
There are currently ten major energy intensive sectors and over thirty smaller sectors with agreements. The major sectors are:
- Aluminium
- Cement
- Ceramics
- Chemicals
- Food & drink
- Foundries
- Glass
- Non-ferrous metals
- Paper
- Steel
Levy Exemption Certificate
Only renewable electricity with a Levy Exemption Certificate (LEC) is exempt from the levy. When an organisation buys renewable electricity with a Levy Exemption Certificate, they should provide the Certificate to HM Customs and Excise.
Ofgem issues Certificates on a monthly basis to accredited generating stations. A single certificate represents the generation of 1 Megawatthour (MWh) of renewable electricity.
Further information
Read more about key legislation for energy intensive industries emissions reduction.