Industry NewsMore business could gain benefits from Climate Change Agreements (CCAs) from 2013 according to new Government proposals. The changes would allow around 450 more companies to secure a discount from the Climate Change Levy (CCL) in return for guaranteed emissions reductions.
The current CCA scheme ends in 2013 but the last Budget unveiled plans to extend it by another decade to 2023. Before this point there were already plans from the previous administration to streamline the project, which have now been developed by the Coalition Government. These have been opened to consultation until 28 October 2011.
Among the proposals for the CCA are for a reduction in the threshold for CCL discounts. This would replace the current 90/10 rule with a 70/30 rule. The change would allow many more customers to claim the full discount on all their site. The consultation also would ensure all current 54 business sectors will remain in the CCA and the current biennial reportino method would be retained. There would be a review in 2020 to see if additional sectors can join. This is to reduce uncertainty and administration burden.
A large change would be to create a virtual two-part CCA to reduce overlap with the EU Emissions Trading Scheme (EU ETS). The CCA would have two elements. One would cover emissions also in the EU ETS where a CCL discount could be still be applied, and then an negotiated CCA target for the remainder of the emissions and the electricity used. The consultation also suggests the end to the UK Emissions Trading Scheme to be replaced by a buy-out mechanism.
Gregory Barket, Minister of State for Climate Change, commented, "These proposals will provide financial benefits to business in the range of 2.4 to 3.4 million pound during the life of the scheme, I am keen to ensure that a revitalised CCA scheme provides industry with the space in which to build on the energy efficiency improvements of the past 10 years and create world beating energy efficient industries which can form a core part of our growing low carbon economy."
More details of the consultation can be found at www.decc.gov.uk/assets/decc/11/consultation/cca-simplification/2636-cca-simplification-condoc.pdf