Benefiting the textile industry, the UK Fashion and Textile Association (UKFT) has secured a six-year extension for the Climate Change Levy (CCL) rebate scheme. Starting on Jan 01, 2026, the new scheme will continue until Mar 2033. According to Adam Mansell, CEO, UKFT, the current scheme saves the textile industry around £5 million annually, so a new six-year extension is excellent news.

The CCL rebate offers discounts on energy taxes to textile companies in exchange for meeting energy reduction targets. This scheme specifically supports the wet processing sector, including dyeing, printing, coating, and drying activities, as well as spinning, weaving, and knitting operations. There have been no changes to the eligibility criteria, so companies already in the scheme that have met their targets or paid the buy-out fee are expected to be automatically enrolled in the new program.

While UKFT has retained the fundamental structure of the scheme as similar to previous schemes, it has made several other key changes. The new scheme will streamline reporting with targets set every two years and requirement of minimal annual reporting. Companies must also complete a mandatory annual self-certification on the 70/30 rule. The scheme will also introduce a new standardised target system to simplify energy reduction goals, eliminating confusion over previous 'relative' or 'novem' measures. Additionally, energy surpluses from the new scheme can be used to meet future targets, but surpluses from the current scheme cannot be carried over.

UKFT will continue to manage the scheme, assisting companies with paperwork, registration, and performance monitoring. To avail the benefits of this scheme, participants will have to pay a £185 fee to the Environment Agency, a £250 joining fee to UKFT, and an annual administration fee equivalent to 5 per cent of the savings achieved, which is reduced to 3 per cent for UKFT members or affiliates.