Manufacturers are being encouraged to take part in a Climate Change Agreement (CCA) that has saved metalformers £100m over the last twenty-five years.
The Confederation of British Metalforming (CBM) has successfully passed this major milestone based on the money claimed back against the climate change levy tax that is applied to all gas and electricity bills.
It has now reopened its window for new applications to come forward to be considered for the next phase that is currently being negotiated and will run from January 2026 until 2033.
This means that firms can sign-up to become a member of the CBM to access the agreement.
Then, by declaring that they are willing to work towards environmental improvements, will be able to access the 100% tax rebate on costs associated with metalforming (forging, drop forging, stamping, punching and precision bending for example), heat treatment and coating of metals processes.
‘Directly associated activities’, which include air compressors, area heating, lighting and process cooling, are also covered.
“Our CCA is a fantastic resource for high energy use manufacturers, who want to save money that they can channel into making their operations greener and more efficient,” explained Geraldine Bolton, Chief Executive of the Confederation of British Metalforming.
“The CBM agreement has been in place for 25 years and, on average, saves our members between £3.5m and £4.5m every year, that they would otherwise be paying in CCL tax.
“This has often been a 100% rebate for metalformers! And the good news is that we have a specialist team in place who can walk you through the application process and the other steps you need to take in order to make a successful submission.”
She went on to add: “We are currently negotiating with the Department for Energy, Security and Net Zero for the next phase, which means we can open it up to new entrants from 1st May 2025 for submission.
“If you are not already a member of CBM, and operate the qualifying processes, then please speak to us about this opportunity and take advantage of our expertise and the savings.”
By way of additional updates to the scheme, the Confederation of British Metalforming is helping to shape the eligibility processes for the next Climate Change Agreement and is working with the Environment Agency to establish new additional criteria.
This will focus on expanding the process so companies involved in roll forming can apply along with other additional areas of eligibility.
Discussions are progressing well on this front and the CBM believes that the new energy target calculation matrix being suggested will provide companies with additional benefits to being in a Climate Change Agreement.
Geraldine concluded: “For current participants, there will be a requirement to self-accredit that you are still eligible for the scheme and that measuring and eligibility percentages are accurate and reported annually. We are experts in this field and can assist you to do this.
“If you haven’t taken advantage of the CBM’s CCA previously, then get in touch with one of our team quickly. The window opens in May and closes on August 31st.
To be considered for the next phase of the Climate Change Agreement, and to make use of the CBM’s specialist energy services please email louise.campbell@thecbm.co.uk.