Climate Change Agreements (CCAs)
It’s time to get smart with your Climate Change Levy. Enter into a Climate Change Agreement.
CCA EXTENSION CONSULTATION DECISION
The UK Government has published its decisions on the extension consultation on 3rd August and decided to extend the CCA scheme until March 2025, and it has reopened the scheme to new entrants for the first time since October 2018. The deadline for new applications is 30th November 2020 – but be aware that some trade associations may require your submissions up to 4 weeks before this date. It’s estimated that this extension could save businesses around £300m a year – so if your business is eligible for the scheme, it pays to participate.
LET US TAKE CARE OF THE ADMIN
We know that in the current circumstances, many businesses don’t have the time or the resources to dedicate to achieving CCA compliance. But, as eligible businesses can save up to 92% on their electricity Climate Change Levy (CCL) and 83% on gas, a CCA can make a real difference to your energy bills and the business bottom line. Our in-house experienced team can reduce the administrative strain involved in achieving CCA compliance. Allowing your business to gain a substantial discount on the CCL, whilst alleviating the burden from your in-house team.
What is a Climate Change Agreement?
Climate Change Agreements (CCAs) are voluntary agreements made between UK business and the government to reduce energy use and carbon dioxide emissions. They were established to allow energy intensive businesses to reduce the cost of the Climate Change Levy (CCL) standing charge on their electricity and gas bills. For organisations holding a CCA, the CCL will be reduced by up to:
- 92% on electricity bills
- 83% on gas bills
Companies eligible for CCA’s are those that carry out an ‘eligible process’, i.e. a process at a site which is considered energy intensive by the national Environment Agency or is controlled under the Environmental Permitting Regulations. This covers a range of industries from plastic moulding and metal packaging to agricultural businesses such as intensive pig and poultry farming.
Climate Change Agreements provide a formal and incentivised structure to improve energy efficiency, by agreeing to challenging targets and financial penalties for non-compliance.
Participants are given an overall objective by 2020, with “interim targets” at 3 biennial intervals to ensure good progress is being made – 2014, 2016 and 2018.
We are currently in the second iteration of the scheme (April 2013 – June 2023) and significant changes have been made; enforcement of the rules is stricter under the Environment Agency (EA), targets have been reset and penalties are higher. Managing CCAs now is a more complex task. Audit compliance is crucial to avoid new penalties for non-conformance. The EA and HMRC are requesting more comprehensive evidence packs and have already commenced auditing and imposing penalties.
How EIC can help
We have an expert team of Carbon Consultants and Data Analysts dedicated to offering you an all-encompassing Climate Change Agreement service. From Initial Application to data analysis and evidence collation, our team will provide the necessary guidance to ensure you can benefit from a CCL reduction through the CCA scheme. Our service includes:
- Experienced consultants from engineering and industry backgrounds to support you through the application process
- Regular performance reporting on your progress
- Face-to-face meetings
- The compilation of a clear, accurate and complete evidence pack
- A formal internal audit
- Access to an in-house aM&T platform and hardware
- Advice on further actions & strategy development for the future
We are independent of any Trade Federations and have been active in managing CCAs since they started in 2001.
Our team of dedicated Data Analysts and Carbon Consultants regularly attend working groups which interact with government, placing us at the forefront of decision-making on energy and related climate change policies including CCAs.
We pride ourselves on doing a good job and offering a quality service with added value.
Our expert team will:
- Provide you with essential guidance and support
- Identify the best opportunity of minimising the cost of the buy-out or avoiding it altogether
- Ease the burden the CCA scheme may bring, allowing you to concentrate on your business
- Interpret the legislation for you to avoid confusion
- Help you to avoid the penalties associated with the CCA scheme for non-compliance
- Provide you with peace of mind and reassurance that your compliance is in safe hands
- Inform you on any legislative changes that may affect your organisation
- Help you to become more energy efficient, which can save you money
A Climate Change Agreement is a way to reduce your CCL. Get in touch to find out how we can help.