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Climate Change Levy


UKFT expects that the UK Government will announce a new scheme for 2025. 

The Climate Change Levy was introduced as an energy tax payable by all business. However, some industrial sectors were offered a rebate in the Levy in return for agreeing to specific energy reduction targets. For the textile industry only the wet processing sector (dyeing, printing coating and associated drying and finishing activities) along with spinning, weaving and knitting (and other similar processes) are eligible for the discount.

The Levy is an important scheme for the industry, responsible for saving over 650,000 tonnes of carbon since its start in 2001. During this time the industry has also reduced its energy consumption by 25% and saves the industry more than £5m per year.

The CCL rebate scheme for the textile industry is administered by UKFT. UKFT will help companies complete all the necessary paperwork, will submit all necessary registration details to the Environment Agency. UKFT collect and monitor company’s performance every three months and help companies develop strategies to meet their energy reduction targets.

There are costs involved in taking part in the scheme. There is a fee of £185 that is payable to the Environment Agency, a UKFT joining fee of £250 and then an administration fee payable to UKFT of an annual 5% of the savings achieved through the scheme. This figure drops to 3% for those companies that are members of UKFT or are a member of an organisation that in turn is a member of UKFT (view our Federated Members here).

To register your interest and to receive further information please email ana.findlator@ukft.org

If you are already covered by the scheme, there is no need for further action.