Policy paper

Climate Change Levy — exemptions for sodium bicarbonate produced from soda ash and electrolytic hydrogen

This tax information and impact note is about planned exemptions from Climate Change Levy (CCL) for electrolytic hydrogen and sodium bicarbonate produced from soda ash.

• From: HM Revenue & Customs
• Published: 12 January 2026

Documents

Exemptions from Climate Change Levy for sodium bicarbonate produced from soda ash and electrolytic hydrogen

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Details

Amendments to the Climate Change Levy (Fuel Use and Recycling Processes) Regulations 2005 are planned for Spring 2026, subject to approval by the House of Commons.

These amendments mean the following will be treated as non-fuel uses and will be exempt from Climate Change Levy (CCL):

• electricity used in electrolysis to produce hydrogen
• natural gas used as a source of carbon dioxide to produce sodium bicarbonate from soda ash

Published 12 January 2026