Climate Change Levy: Energy-intensive installations and eligible facilities

In October 2024, the government re-affirmed its commitment to a new 6-year Climate Change Agreement (CCA) Scheme.

Three new processes have been found to be eligible by the government for inclusion in the CCA Scheme. These processes are:

• the mechanical recycling of plastic
• the packaging of spirits
• the production of batteries for electric vehicles

The draft regulations therefore seek to implement this into law by January 2027.

The draft regulations also make some technical amendments to eligible processes currently in the CCA Scheme. This is to ensure eligibility conditions are more robustly defined and are consolidated in one statutory instrument. The regulations do not seek to preclude any business that presently carries out an eligible process from eligibility.

This technical consultation aims to gather feedback from stakeholders on the drafting of the statutory instrument, to ensure the policy intent is delivered correctly and efficiently. We welcome views from those with an interest in the changes.