Following the Kyoto Agreement and recommendation of the Marshall Report on Economic Instruments, the U.K. Government introduced the Climate Change Levy on all non-domestic use in April 2001.

The CCL is charged on all energy supplied to industrial and commercial users and is levied on the monthly energy bill. It is shown separately as such, the purpose of this levy is to encourage industry to reduce energy consumption.

The monies raised from this tax are to be paid back to industry in the form of ECA (Enhanced Capital Allowance) on energy saving equipment. Overall the taxation effect is to be Revenue neutral.

All equipment eligible for ECA must be approved by DEFRA and the Inland Revenue and appears on the Energy Technology Product List.

Approved registered products appear on the Energy Technology Product List available at the official DEFRA/Inland Revenue website referring to Climate Change Levy.