Designed to incentivise industrial energy efficiency, the government has re-vamped the Climate Change Agreement scheme. The details of the changes are outlined below. You can now book a no-obligation consultation with a JRP specialist to discuss what the changes mean for you and your organisation. Book your free consultation here What is the Climate Change Agreement Scheme? Climate Change Agreements have been in place in the UK for over 20 years, offering energy-intensive businesses the opportunity to reduce their green levies by meeting energy efficiency targets. Introduced in 2001, the CCA scheme encourages businesses in certain industrial sectors to cut energy use and carbon emissions in return for lower rates on the Climate Change Levy (CCL), a tax on energy bills. How does the scheme work? CCAs are available to a wide range of industries, from major energy-intensive sectors like steel, glass, data centres and textiles manufacturing to transportation logistics and intensive dairy farming. Businesses with a CCA must monitor and report their energy consumption and carbon emissions against agreed targets in two-year reporting periods. Overview of changes to the scheme The Government has committed to a Climate Change Agreement scheme for a further six years, with reduced Climate Change Levy (CCL) rates until March 2033. Importantly, existing participants will not automatically be rolled into the new scheme. Each facility must reconfirm its eligibility before the new scheme begins, and a proportion of participants will be subject to audits to verify compliance with the eligibility requirements. New entrants in existing sectors will be able to apply to join the new scheme from 1 May to 31 August 2025, using current eligibility criteria as set out in the existing legislation. Some Associations have notified DESNZ of their intention to register a new sector or for a new process to be […]