Policy

Reducing demand for energy from industry, businesses and the public sector

Supporting detail:

Climate Change Agreements

Climate Change Agreements (CCAs) are voluntary agreements that allow eligible energy-intensive sectors to receive up to 90% reduction in the Climate Change Levy if they sign up to stretching energy efficiency targets agreed with government.

A total of 53 industrial sectors across more than 9,000 sites have signed up to targets. Targets apply to participating sectors from 2013 to 2020, with the scheme running until 2023. Here is a list of the agreed sector targets and a list of sites that are participating in the CCA scheme. The estimated carbon and energy savings of the CCA scheme is set out in the 2 April 2013 press release.

The government has introduced a 100% exemption from CCL for energy used in certain energy-intensive (metallurgical and mineralogical) industrial processes. All businesses which hold a CCA and carry out these processes can continue to participate in the scheme. These businesses can claim 100% relief for those industrial processes now exempt from CCL and, where applicable, CCA discount on all other industrial processes.

Target review 2016

In October 2014 we published a discussion paper setting out the government’s proposals for the 2016 review of Climate Change Agreements targets and inviting views from stakeholders on the proposed approach and methodology. This paper also includes a call for evidence to inform the review of sector commitments.

CCA guidance and policy documents

The Environment Agency is the UK-wide CCA scheme administrator. The Environment Agency CCA webpages have further information on how CCAs work including guidance for businesses on managing a CCA and on setting up a CCA.

Alongside the Environment Agency’s CCA operations manual, the government has produced policy documents that underpin the operation of the CCA scheme.

The government carried out consultations on simplification of the CCA scheme in March 2012, January 2012, September 2011, March 2010, December 2009 and March 2009.

Previous CCA scheme

The previous CCA scheme began in 2001 and expired on 31 March 2013. The government published the performance of CCA participants at various milestones from 2001 to 2012.

Further useful information on the previous CCA scheme can be found on the National Achives of the DECC: CCA webpages.

Legislation

The legislation that supports CCAs is available on the Legislation.gov.uk website: