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Climate Change - Latest Developments

The Government have announced an exemption from Climate Change Levy for Mineralogical and Metallurgical process in line with the Energy Tax Directive. This exemption will take effect  from 1st April 2014, please note that surface treatment using solvents is not covered by the exemption and this includes all paint processes.


Following a meeting with the Department of Energy & Climate Change, MH Revenue & Customs and the Environment Agency, I can confirm that you will now have essentially 2 options; either remain in the Climate Change Agreement or terminate it. You do not have to make a decision now as any overpaid CCL can be reclaimed by simply backdating your next PP10 & PP11 forms if you choose to terminate your agreement. If you remain in the agreement, nothing will change and you simply continue as at present. If you decide to leave the agreement you will need to consider the following:  


1 - You will only be able to claim the exemption from CCL for the eligible processes on the list and not associated processes as is the case with CCAs.

2 - If you have an Environmental Permit (formerly IPPC), you will need to comply with all of the energy efficiency aspects of your relevant BREF document. You are currently exempt from this aspect due to having a climate change agreement in place.

3 - The Environment Agency will still make their full annual charge of £185.

4 - You do not need to rush into making a decision now.

5 - You will have to formally terminate your CCA

6 - There may be CRC implications for the activities which are not covered by the exemption.


What is ESOS?

What is ESOS ImageESOS is the UK’s response to Article 8 of the European Commission’s Energy Efficiency Directive. The aim is to cut carbon emissions by requiring large businesses to identify energy reduction measures. Thousands of UK organisations will be affected by the scheme.

What do I need to do?

Under ESOS, all large companies must undertake an energy audit conducted or overseen by an approved Lead Assessor once every four years. Audits will include an estimate of total energy consumption, covering buildings, industrial processes, and transport, and identify energy saving opportunities. The audit must be signed off by a board-level director before being submitted to the Environment Agency. The first deadline will be 5 December 2015.

Full information at:


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