Consultation outcome

Climate Change Agreements: consultation on extension and future scheme (2023)

From:
Department for Energy Security and Net Zero
Published
15 March 2023
Last updated
16 November 2023 — See all updates
This consultation has concluded

Download the full outcome

Climate Change Agreements: consultation on extension to 31 March 2027 and further proposals on any potential future scheme - government response

PDF, 978 KB, 60 pages

Detail of outcome

In March 2023, the government announced a further 2-year extension to the Climate Change Agreements (CCA) scheme.

We launched this consultation at the same time, seeking views on:

  • the detail of the extension
  • any potential future scheme
  • our proposals for what should follow on from the current CCA scheme

This document includes a high-level summary of the feedback by question, followed by the government’s response to each. In terms of the potential future scheme, we have summarised the responses to those questions, but not yet reached a decision.

The government response includes an updated indicative timeline.

Detail of feedback received

We received 55 responses to the consultation from the following groups:

  • 31 were from sector/trade associations
  • 11 were from businesses
  • 9 were from consultants
  • 2 were from academics
  • 2 were from third sector organisations

Nearly all respondents welcomed the extension and certainty on the Climate Change Levy (CCL) discount, worth an estimated £300 million annually to businesses.

There was broad support for maintaining existing eligibility criteria which provides certainty for existing participants.

Responses to our proposals were generally positive, but concerns were raised around:

  • tight timelines
  • the increase to the buy-out and penalty prices

Original consultation

Summary

We're seeking views on proposals for an extension to the current Climate Change Agreement scheme, and on further proposals resulting from the earlier consultation.

This consultation ran from
to

Consultation description

This consultation seeks view on an extension to the current scheme, adding a reporting period between 1 January 2024 to 31 December 2024. This will result in another certification period ending on 31 March 2027, providing further reductions in the Climate Change Levy for participants.

The scheme would be open to new entrants who qualify under the current eligibility criteria.

The consultation outlines:

  • aspects of the current scheme that will be retained for the extension, as well as some proposed changes
  • further developed proposals for a potential future scheme, following on from proposals in our last consultation including target setting, reporting and how performance will be measured

We are seeking views from:

  • sector associations and business which participate in the scheme
  • operators of facilities not currently in the scheme that may be eligible
  • trade associations
  • NGOs
  • consultants
  • energy suppliers
  • academia
  • any others with an interest in the scheme

Documents

Climate Change Agreements: consultation on extension to 31 March 2027 and further proposals on any potential future scheme

PDF, 842 KB, 40 pages

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Published 15 March 2023
Last updated 16 November 2023 + show all updates

  1. Government response published.

  2. First published.