Climate Change Agreement… Is this for you?

In light of the Spring Budget, it was discussed that Climate Change Agreements (CCA’s) would be extended to 2025 for existing participants and for the first time since 2018 the scheme would be re-opened to new applicants.

This is terrific news should you already be in the scheme and certainly something to consider if you are thinking of joining the scheme.

New applications need to be submitted by September 2020.

A climate change agreement, however, is not for everyone and this is not just down to whether you meet the criteria.

Yes, there are benefits such as a structured approach to energy management and reduced Climate Change Levy (CCL) costs however this is a commitment with targets set. If the targets are not met then there are financial penalties imposed.

Does a 92% reduction in Climate Change Levy costs sound interesting?

Then a Climate Change Agreement (CCA) could be perfect for your business.

CCA’s have been closed to new applicants since 2018 however new registrations are being considered following the announcement at the spring budget. With a strategy to encourage increased efficiency which in turn will lead to lower consumption and costs the benefits of a CCA are clear to see.

CCL costs are on the rise with the highest increased in April 2019 in line with the removal of the carbon Reduction Commitment and introduction of SECR. Whilst electricity CCL costs are starting to show signs of levelling out, Gas CCL is continuing to climb into 2020 and 2021.

Now may be a great time to consider a CCA should your company be eligible. We have listed across some of the sectors that meet the criteria.

The scheme is voluntary and is administered by the Environmental Agency.

We would welcome the opportunity to speak with anyone who is considering joining the scheme or questions for those already enrolled and are looking for clarity on the extension periods.

High energy users in the following sectors are eligible:

  • Food & Drink
  • Agriculture
  • Textiles
  • Brewing
  • Meat & Poultry
  • Plastics
  • Printing
  • Cold Storage
  • Chemical Data Centres
  • Dairy
  • Packaging
  • Engineering