Third Delegated Legislation Committee: The draft Climate Change Agreements (Administration, Energy-intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026
Parliamentary debate
Parliament will examine regulations that revise and partially dismantle the Climate Change Agreements scheme, which gives energy-intensive industrial facilities a tax discount in exchange for meeting energy efficiency targets. The 2026 amendments alter how the scheme is administered and which installations remain eligible, affecting manufacturers, refineries, and chemical plants across the UK that currently benefit from the relief.
The changes will reshape financial incentives for energy-intensive industry at a moment when UK manufacturing competitiveness and net-zero policy are under tension. Firms losing eligibility or facing stricter compliance rules may face higher energy costs, with knock-on effects on industrial employment and investment decisions in vulnerable regions.
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