Government has recognised that the addition of 10-20% to energy costs can affect industrial competitiveness. In order to maintain the competitiveness of UK manufacturing industry, including the craft bakery industry, the Government is offering an 80% Climate Change Levy discount to "energy intensive users". In return for the 80% Climate Change Levy discount, eligible companies must commit to meeting specific targets for improving energy efficiency or reducing carbon dioxide emissions. This mechanism is known as a Climate Change Levy Agreement (CCLA).

Rules governing eligibility to participate in a CCLA and gain the Levy discount are complex - further details on eligibility are given in Information Sheet 2.

NAMB/SAMB has successfully set up a CCLA with Government. The NAMB/SAMB Agreement relates to craft bakeries and bakery shops that carry out food processing operations including bake off and sandwich preparation.

It is important to note that there are several food and drink industry Trade

Associations that have their own CCLA with DEFRA. For example, the Food and Drink Federation has a CCLA. A full list of these other CCLAs is included in Information Sheet 4.

To administer the Agreement between NAMB/SAMB and Government, NAMB/SAMB has set up the "Master Bakers Climate Change Levy Discount Scheme". This scheme is being administered on behalf of NAMB/SAMB by Enviros. If your company is engaged in the operation of a craft bakery or a bakery shop you can apply to join the Master Bakers Climate Change Levy Discount Scheme to obtain your 80% discount. You can apply to the Scheme even if you are not a member of NAMB/SAMB.

*The act of processing is important in the definition of eligibility - sites that simply store, package or sell food products are NOT eligible for a Levy discount.