7 April 2025

Open consultation on Climate Change Levy: electrolytic hydrogen and energy context

Seeking views on the best legislative route to remove costs and avoid unintended consequences.

A Toyota hydrogen fuel cell concept vehicle on display at Megaweb Toyota City Showcase in Tokyo
A Toyota hydrogen fuel cell concept vehicle on display at Megaweb Toyota City Showcase in Tokyo. © Darren Halstead/Unsplash

At Spring Statement 2025, the government committed to removing Climate Change Levy (CCL) costs from electricity used in electrolysis to produce hydrogen. This consultation is open until 11:59pm on 7 May. 

This consultation asks how CCL costs can be reduced, while delivering environmental benefits.

Emma Guthrie, CEO of the Hydrogen Energy Association, comments, ‘The HEA welcomes the Government’s commitment to removing Climate Change Levy costs from electricity used in electrolytic hydrogen production - a key issue our Green Hydrogen Working Group has long campaigned for.’

 

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