Climate Change Levy

The Climate Change Levy (CCL) is a tax on energy delivered to users in the United Kingdom. Its aim is to provide an incentive to increase energy efficiency and to reduce carbon emissions.

Climate Change Agreements

When CCL was introduced in the UK, the position of energy intensive industries was considered, given their energy usage, the requirements of the Integrated Pollution Prevention and Control regime and their exposure to international competition. As a result an 80% discount from the levy was allowed for those sectors that agreed targets for improving their energy efficiency or reducing carbon emissions.


The regulations cover the ten main energy intensive sectors of industry, (aluminium, cement, ceramics, chemicals, food & drink, foundries, glass, non-ferrous metals, paper and steel) and over thirty smaller sectors, and, in agriculture, livestock units for the intensive rearing of pigs and poultry.

Cement industry performance

UK cement manufacturers signed a Climate Change Levy Agreement with government to deliver an overall energy efficiency improvement across their sector of 26.8% by 2010 against a base year of 1990. The industry has already achieved a 25% improvement in energy efficiency.


Download table: Cement Industry Climate Change Agreement Performance and Targets 1990 to 2010


The cement industry uses energy efficiently as it represents around 35% of its production costs and the industry is working hard to reduce the carbon dioxide it generates through its manufacturing process.


Achievement of the 26.8% energy efficiency target depends on the industry's committed investment in new plant and increased use of alternative fuels. Three new kilns at Rugby (Cemex UK Cement), Padeswood (Castle Cement) and Tunstead (Buxton Lime Industries) have replaced older, less efficient processes.

Controlling carbon dioxide

Despite the very large tonnages of limestone the UK cement industry burns, it contributes less than two percent of the country's total carbon dioxide production. Over the last eight years it has cut carbon dioxide emissions by 18.5% - over two million tonnes. Its use of alternative energy sources not only replaces fossil fuels but also cuts the overall total amount of carbon dioxide that would have been produced if both the fossil fuels and the processed waste alternatives had been burned.