Don’t Delay Your CCA

Government gives green light to those eligible to save money and set course for net zero

For any business with eligible processes and plans to reduce energy or carbon emissions, applying for a Climate Change Agreement (CCA) should be a no-brainer.

The government has published its response to the consultation on an extension to the current scheme for CCAs, which relieve eligible energy-intensive users from most of the costs of the Climate Change Levy (CCL). The consultation outlined proposals to extend the scheme by two years and open it up to new entrants, allowing eligible facilities not currently participating to apply to join in 2021. The consultation received 101 responses, which fed into the final decision-making.

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Increase to Buy-Out for Climate Change Agreements

Climate Change Agreement (CCA) participants will see an increase in the buy-out price for future Target Periods, the government confirmed this month. The Government Response followed a discussion paper, issued earlier in the year, on both the buy-out price and a possible review of targets.

CCAs are voluntary agreements between energy-intensive industries and the government, with the aim of increasing energy efficiency. In return for meeting emissions targets, CCA participants receive a discount to the Climate Change Levy (CCL),  currently a 90% reduction on electricity and 65% on gas and other taxable commodities. The government estimates that participants save a total of £300 million per annum against their CCL costs.

Agreements are available to companies that carry out one of the processes specified for each of the 53 trade sector bodies that coordinate CCA participation. A variety of sectors with energy-intensive processes are included , such as chemicals, surface engineering, and food.


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