Climate Change Levy
The Climate Change Levy (CCL) was introduced in the UK by the 2000 Finance Bill and came into force on April 1 2001. It is a tax on energy use intended to promote energy efficiency and to encourage investment in energy saving equipment. It was originally suggested that it would reduce carbon dioxide emissions by at least 5 million tonnes by 2010 as part of the UK government’s strategy for meeting its commitments under the Kyoto Protocol.
For the purposes of the Levy, energy use refers to electricity, gas, liquid petroleum gas and solid fuel. The CCL is charged by energy suppliers on behalf of the government from most businesses and public sector bodies that pay VAT at the standard rate. Domestic and charitable non-business energy use is exempt from the CCL, as is energy from some renewable sources and combined heat and power (CHP). There are also partial exemptions for energy intensive users and horticulture users. Ofgem administers the exemption certification scheme for renewable sources and combined heat and power on behalf of HMRC.
There are two rates of Climate Change Levy:
- The main rates of CCL.
- The Carbon Price Support (CPS) rates of CCL.
The main rates of CCL are charged on the supply of specified energy products for use as fuels. The CPS rates are charged on the supply of specified energy products for use in electricity generation (Ref HMRC, Climate Change Levy - introduction to the two rates of CCL).
In the 2016 budget, it was announced the Carbon Reduction Commitment energy efficiency
scheme would be abolished and replaced, in a revenue neutral way, with an increase in the Climate Change Levy from 2019. This it was said was because the scheme had been 'bureaucratic and burdensome'.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Building Control Independent Panel final report
A precis of a key report lead by Dame Hackitt with full recomendations and link to the government response.
Guide to ISO 19650 for Architecture Firms (2026)
A user gives their low down.
A UK training and membership provider for mould remediation professionals.
Building Safety recap April, 2026
A short and longer run-through of the month, with links to further information and sources.
CIAT May 2026 briefing.
Independent NSI and BAFE study exploring how organisations are changing the way they buy fire safety services.
From medieval scribes to modern word art.
ECA welcomes crackdown on late payment and push for clean energy, whilst CIOB seek fixed cladding removal timeframes.
Cyber Security in the Built Environment
Protecting projects, data, and digital assets: A CIOB Academy TIS.
Managing competence in the built environment
ITFG publishes new industry guide on how to meet the ICC principles.
The UK's campaign to reduce noise pollution: Mythbusting, articles and topic guides.
Setting Expectations on Competence Management
Industry Competence Committee.
New Scottish and Welsh governments
CIOB stresses importance of construction after new parliament elections.
The sad story of Derby Hippodrome
An historic building left to decay.
ECA, JIB and JTL back Fabian Society call to invest in skills for a stronger built environment workforce.