Climate Change Agreements (CCAs)

It’s time to get smart with your Climate Change Levy. Enter into a Climate Change Agreement.

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:

  • 90% on electricity bills
  • 65% on other fuels

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.

The Climate Change Agreement Process

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 EIC

A Climate Change Agreement is a way to reduce your CCL. Get in touch to find out how we can help.

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