At Spring Statement 2025, the government committed to removing Climate Change Levy (CCL) costs from electricity used in electrolysis to produce hydrogen. This will support the growth of low carbon electrolytic hydrogen production, which will play an important role in decarbonising the power system and hard to electrify industrial and transport sectors.
This consultation seeks views on the best route to remove these costs via legislative changes, to ensure the commitment is delivered in a way that achieves the policy aims and the government’s objectives whilst avoiding unintended consequences.
The government is also looking to the future. The wider energy landscape has changed significantly since CCL was introduced, and will continue to develop, therefore, government also announced that it will conduct a wider review of CCL. To inform the scope of this review, this consultation seeks views on other areas where CCL may need to be reviewed to ensure it is aligned with developments in the changing energy landscape and the government’s clean power and net zero missions.
The consultation will be open for 6 weeks from 26 March to 7 May.
Responses will be shared with His Majesty's Revenue and Customs and the Department for Energy Security and Net Zero.
Privacy notice
Click here to download and view the privacy notice for the consultation, which sets out how HM Treasury will use your personal data for the purposes of the ‘public sector exit payment’ and explains your rights under the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA).