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UKFT's CCL rebate scheme opens for new entrants

Jun '20
Pic: Shutterstock
Pic: Shutterstock
The Climate Change Levy (CCL) rebate scheme for the textile industry has now opened for entrants till September 2020. Spinners, weavers, knitters, dyers, printers, or finishers, are eligible to join the scheme. The scheme can save textile companies an average of £30,000 a year. The CCL rebate scheme has been running very successfully since 2002.

Since 2002, the industry has saved over £90 million in the levy and energy saving measures have seen the sector reduce its emissions by over 600,000 tonnes of CO2. The CCL scheme was introduced as an energy tax payable by all business in 2001. However, some industrial sectors were offered a rebate in the levy in return for agreeing to specific energy reduction targets. For the textile industry, there are two separate schemes one covering the wet processing sector (dyeing, printing coating and associated drying and finishing activities) and the other covering spinning, weaving and knitting (and other similar processes), according to a press release by UKFT.

Companies joining the UKFT CCL scheme will be eligible for a rebate of some 92 per cent on the CCL on electricity and 81 per cent on the levy on electricity. On average companies are currently saving over £30,000 a year, but for large companies the savings can be over £100,000 a year. In order to maintain the discount, companies must meet set energy reduction targets. New entrants to the scheme will need to demonstrate that by 2022 they will have reduced the amount of energy used by 7 per cent compared to 2018.

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 collects and monitors company’s performance every three months and helps 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 per cent of the savings achieved through the scheme. This figure drops to 3 per cent for those companies that are members of UKFT or are a member of an organisation that in turn is a member of UKFT.

Fibre2Fashion News Desk (GK)

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