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
Apprenticeships and the responsibility we share
Perspectives from the CIOB President as National Apprentice Week comes to a close.
The first line of defence against rain, wind and snow.
Building Safety recap January, 2026
What we missed at the end of last year, and at the start of this...
National Apprenticeship Week 2026, 9-15 Feb
Shining a light on the positive impacts for businesses, their apprentices and the wider economy alike.
Applications and benefits of acoustic flooring
From commercial to retail.
From solid to sprung and ribbed to raised.
Strengthening industry collaboration in Hong Kong
Hong Kong Institute of Construction and The Chartered Institute of Building sign Memorandum of Understanding.
A detailed description from the experts at Cornish Lime.
IHBC planning for growth with corporate plan development
Grow with the Institute by volunteering and CP25 consultation.
Connecting ambition and action for designers and specifiers.
Electrical skills gap deepens as apprenticeship starts fall despite surging demand says ECA.
Built environment bodies deepen joint action on EDI
B.E.Inclusive initiative agree next phase of joint equity, diversity and inclusion (EDI) action plan.
Recognising culture as key to sustainable economic growth
Creative UK Provocation paper: Culture as Growth Infrastructure.
Futurebuild and UK Construction Week London Unite
Creating the UK’s Built Environment Super Event and over 25 other key partnerships.
Welsh and Scottish 2026 elections
Manifestos for the built environment for upcoming same May day elections.
Advancing BIM education with a competency framework
“We don’t need people who can just draw in 3D. We need people who can think in data.”