CCA and MinMet: Are You Missing Out on CCL Savings

Are you paying more Climate Change Levy than you need to?

Many businesses are paying significantly more in Climate Change Levy than they need to. Two separate schemes exist that can reduce or eliminate that cost entirely, and a substantial number of eligible businesses are not claiming one or either of them. With an application deadline of 31 August 2026 for the Climate Change Agreement scheme, now is the right time to establish whether your site qualifies.

Two schemes, two types of relief

The Climate Change Levy is a tax applied to the electricity and gas bills of all non-domestic energy users in the UK. For energy-intensive manufacturers, it represents a significant and often overlooked cost. There are two distinct mechanisms that can reduce or remove it, and they work differently.

These two schemes are not mutually exclusive. A business that qualifies for MinMet on part of its energy use may also benefit from a CCA for the remainder. Understanding which applies to which element of your site's consumption is where the complexity lies, and where specialist support adds the most value.

Climate Change Agreements: what you need to know

A CCA is a voluntary agreement between your business and the Environment Agency. In return for committing to energy and carbon reduction targets, your organisation receives a reduced rate of Climate Change Levy on its energy bills. The government estimates the current six-year scheme, running from 2026 to 2030, will deliver around £1.9 billion in CCL reduced rates for participants over its lifetime. 

The new scheme and what has changed

In October 2024, the Department for Energy Security and Net Zero confirmed the new six-year CCA scheme beginning January 2026. Existing participants were not automatically transferred and were required to reconfirm their eligibility separately. If your business previously held a CCA and has not yet reconfirmed, you may already be missing the discount you were previously entitled to.

For new entrants, the application window now runs from 1 January to 31 August each year. The current window closes on 31 August 2026.

The 70/30 rule and the 3/7ths provision

Eligibility for a CCA depends on whether your site's eligible installation meets the 70/30 rule. If the eligible installation uses 70% or more of the site's total primary energy, the whole site's energy consumption qualifies as part of the eligible facility.

If the installation uses less than 70% of the site's primary energy, you can still claim the installation's energy consumption plus up to an additional 3/7ths of the installation's energy consumption from other on-site activities. To apply this 3/7ths provision, both the installation energy and the additional energy must be separately sub-metered.

The MinMet exemption: a separate and additional opportunity

The Mineralogical and Metallurgical (MinMet) exemption is a statutory CCL relief introduced in April 2014. It applies to energy used in specific metallurgical and mineralogical processes as defined in HMRC Exemption Notice CCL1/3. Qualifying activities include a wide range of glass, ceramics, cement, metals production, casting, forging, heat treatment, and surface treatment processes.

Unlike a CCA, MinMet relief does not require entering a voluntary agreement, committing to energy targets, or submitting ongoing performance reports. There is no minimum energy threshold to qualify. Relief is claimed on whichever proportion of energy can be attributed to qualifying processes, and where this represents all or most of a site's energy use, the relief can be 100% of the CCL liability on that energy.

Many manufacturers in foundry, forging, metals processing, ceramics, and glass are eligible for MinMet but have never claimed it. In some cases, businesses may be able to backdate claims subject to sufficient supporting evidence.

How Pro Enviro can help

Pro Enviro has extensive experience supporting energy-intensive manufacturers with both CCA applications and MinMet eligibility assessments. We offer a free energy bill analysis to establish whether your site is likely to be eligible for one or both schemes, and to give you a clear picture of the savings you could achieve.

• Free energy bill analysis to assess eligibility for CCA and MinMet and estimate potential savings
• 70/30 eligibility calculations and 3/7ths assessments using site-level energy data
• Micro metering surveys to provide accurate process-level consumption data where required
• Full CCA application management through your relevant sector association
• MinMet apportionment assessments and HMRC claim support
• Advice on combining CCA and MinMet relief to maximise total CCL savings across your site

With the CCA deadline on 31 August 2026 now under three months away, early engagement is important. A well-prepared application requires time to gather the right data and complete the eligibility calculations.