Country:United Kingdom
Policy status:In Force
Date Effective:2001
Policy Type:Economic Instruments>Fiscal/financial incentives>Taxes, Regulatory Instruments
Policy Target:Transport, Energy Sector>Electricity Generation, Energy Sector, Industry
Agency:Her Majestys Revenue and Customs

The Climate Change Levy (CCL) effective from 1 April 2001, was introduced on energy use in the non-residential sector.

The CCL aims to encourage energy efficiency and help meet the United Kingdom's targets to reduce greenhouse gas emissions and support deployment of renewable energy since those generators are exempted from paying the levy. 

Levy applies to gas, electricity, liquefied petroleum gas (LPG) and coal. The rates of the levy are based on the energy content of the different energy products.


In July 2015 the government announced that the exemption from paying the levy for renewable electricity will be scrapped with a transition period. Details of this change will be discussed in autumn 2015.

Related policies:Exemption from Climate Change Levy for Good Quality CHP , Enhanced Capital Allowances (ECA) - Energy Technology List , Climate Change Agreements

date effective: 2001 (last updated 2015)

Last modified: Mon, 30 Oct 2017 12:23:21 CET