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 deadline for new or re-entries into the scheme was September 2020.
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 etc 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).
REACH is the EU Regulation covering the import and use of chemicals. It is a huge piece of legislation that covers the use of chemicals in almost all products, including those used in the dyeing and printing process but also chemicals that may be on garments being imported in to the EU.
UKFT members can access a textile and clothing industry specific guide on what REACH means to your business. It includes the UKFT’s own list of restricted chemicals.