The UK Government has confirmed that Climate Change Agreements will continue beyond their original end date, with a new target period now open for applications. This is significant news for energy-intensive businesses in eligible sectors.
What are Climate Change Agreements?
CCAs are voluntary agreements between industry sectors and the Environment Agency to reduce energy use and carbon emissions. In return, participating facilities receive a significant discount on the Climate Change Levy—currently worth around 90% of the main CCL rate for electricity.
What’s changing?
The new target period runs from 2025 to 2030, with updated baseline requirements and target-setting methodologies. Existing participants will need to agree new targets, while new entrants can apply to join the scheme.
Key dates and actions
Applications for the new period are now open, with a deadline of March 2025 for existing participants to confirm their continued participation. New entrants should apply as soon as possible to maximise the benefit period.
How we can help
We’ve helped numerous businesses with CCA applications, target negotiations, and ongoing compliance. Contact us if you’d like to discuss whether CCA participation is right for your business.