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 invited views from stakeholders on the proposed approach and methodology. This paper also included a call for evidence to inform the review of sector commitments. The views of stakeholders have been considered, information for the call for evidence has been collected, and a Government Response has been published.
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.
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.
The legislation that supports CCAs is available on the Legislation.gov.uk website:
- Finance Act 2000
- Eligibility SI 2012 sets the eligibility basis under which an installation or site is to be (or continue to be) identified in a given CCA & its subsequent amendments Eligibility Facilities Regulations 2013 and Eligibility Facilities Regulations 2014
- Environmental Permitting Regulations 2010
- Climate Change Agreements (Administration) Regulations 2012 outlines what is required of the Environment Agency as administrator of the new CCA scheme and its subsequent amendments Climate Change (Administration) Regulations 2013 and Climate Change (Administration) Regulations 2014