Business tax – policy paper

Climate Change Levy: exemptions for energy used in metallurgical and mineralogical processes

This Tax Information and Impact Note explains new exemptions from the main rates of Climate Change Levy for supplies of taxable energy products used in metallurgical and mineralogical processes.


The measure will ensure the UK tax treatment of highly energy intensive processes is in line with tax treatments elsewhere in the EU, and reduce any distortion of competition.

As a result of the new Climate Change Levy exemptions, certain existing reliefs, including the current lower rate of 20% that applies to supplies of taxable commodities used in metal recycling, will no longer be necessary and will be repealed.