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Climate Change Levy rebate scheme opens to new entrants


If you are a UK spinner, weaver, knitter, dyer, printer or finisher or make other textile products including nonwovens you could be eligible to join the government’s Climate Change Levy rebate scheme. The scheme can save textile companies an average of £30,000 a year. This scheme will run until March 2025.

Please note: unfortunately garment and knitwear manufacturing is not eligible for the rebate scheme (knitting fabric is included but making jumpers is not).


The CCL rebate scheme for the textile industry has been running very successfully since 2002. In that time 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 scheme is now open to new entrants and will close in March 2022.


The Climate Change Levy 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).

Companies joining the UKFT CCL scheme will be eligible for a rebate of some 92% on the CCL on electricity and 81% 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 the end of 2022 they will have reduced the amount of energy used by 6.7% 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 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 a member of an organisation that is in turn a member of UKFT.

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