Revised the eligibility criteria and sectors for Climate Change Levy discounts and updated the buy-out fee calculation formula.

These regulations update the administrative framework and eligibility criteria for the Climate Change Levy (CCL) reduction scheme, effective from 1 January 2027.

The instrument defines which energy-intensive installations and processes, ranging from chemical manufacturing to data centers and battery production, qualify for climate change agreements.

It directs the Treasury and the Secretary of State to oversee a revised list of eligible facilities while amending the formula used to calculate buy-out fees for participants who fail to meet energy efficiency or emissions targets.

The regulations amended the 2005 Climate Change Levy Regulations to specify electricity used in hydrogen electrolysis and natural gas used in sodium bicarbonate production as non-fuel uses exempt from the levy.

The Treasury enacted these Regulations on March 11, 2026, immediately amending the Climate Change Levy (Fuel Use and Recycling Processes) Regulations 2005 to specify certain industrial uses as exempt from the Climate Change Levy.

Specifically, the amendments introduce hydrogen production via electrolysis and the use of natural gas as a carbon dioxide source in sodium bicarbonate production as 'wholly non-fuel uses', thereby removing the levy charge on the energy inputs for those specific processes.

The 2025 regulations increased payments in lieu of maritime training and revoked the 2023 regulations.

The Tonnage Tax (Training Requirement) (Amendment etc.) Regulations 2025, effective October 1st, 2025, amend the 2000 Regulations by raising payments in lieu of maritime training from £1,421 to £1,705 and the higher rate payment for training failures from £1,329 to £1,613.

These changes apply to relevant four-month periods after September 30th, 2025, and revoke the similar 2023 regulations.

The amendments increase funding for the Maritime Training Trust.

The 2025 regulations amended the 2012 Climate Change Agreements regulations, extending target periods, updating the buy-out fee calculation, clarifying definitions, and enhancing information requirements.

These regulations amend the 2012 Climate Change Agreements (Administration) and (Eligible Facilities) Regulations to extend the scheme's reach to 2030.

Key changes include updating the calculation of buy-out fees with a new formula, clarifying definitions related to emissions and facilities, and introducing new requirements for information provision and reporting.

The regulations also extend the eligibility period of the Climate Change Agreements (Eligible Facilities) Regulations to 2033, refine the calculation of reckonable energy from renewable energy sources, and clarify definitions around biomass and other fuels.

A transitional provision ensures the amendments apply only to target periods from 2026 onwards.