Climate Change Agreements Scheme – key details and who can apply

Climate Change Agreements (CCA) Scheme have been reopened to new entrants until 31st March 2022.

This is a short window for business to engage.

The UK government has announced that new entrants to the CCA Scheme have until 31st March 2022 to apply. New entrants will be eligible to receive reduced rates on the Climate Change Levy (CCL) until March 2025 (Scheme extension).

What is the CCA Scheme and How Does it Benefit Me?

In this short video, our ESG Lead Partner, Mark Lumsdon-Taylor outlines the key details of the Scheme and why business should miss the chance to apply.

The Climate Change Agreements Scheme was first introduced in 2001 with the twin purposes of:

1. Making energy and carbon savings through energy efficiency targets
2. Helping to reduce energy costs for organisations in eligible industrial sectors by offering significant discounts to participating business on their Climate Change Levy (CCL)

MHA MacIntyre Hudson, within its sustainability services offer, can support our clients and businesses to gain the benefit from registering and securing the financial benefit from the CCA.

The CCA Scheme - a triple benefit for industrial organisations

The energy efficiency targets form a basis for organisations to make energy efficiency improvements over a fixed period in return for reduced rates worth an estimated £255m annually on Climate Change Levy bills.

In addition, participating organisations should see significant savings on their energy bills as a result of the energy efficiency improvements they make. The CCL discount is currently 92% for electricity and 83% for gas.

Add to that the beneficial impact on climate change and the CCA Scheme offers an unprecedented ‘win, win, win’.

Who can apply for the CCA Scheme?

The CCA Scheme is open to businesses across a wide range of sectors that have energy-intensive processes including Agricultural Supply, Bakeries, Cold Storage, Egg Processing, Horticulture, Laundries, Packaging & Industrial Films, Paper, Pig and Poultry farming, Plastics, Supermarkets, Surface Engineering and Textiles. There are currently some 53 sectors holding umbrella CCA Scheme agreements so it is worth checking whether your own business is eligible to apply for the CCA Scheme.

The Current Deadline for New Applications is 31st March 2022

New entrants to the CCA Scheme must apply by 31st March 2022. However, the deadline may be sooner: applications are made via the industry sector association relevant to each industry, and each has set its own specific cut-off date. It is certainly worth contacting your industry body right away to check their particular date.

A Transition Measure

The latest announcement covers the period between the existing CCA Scheme and the new Scheme that is currently in consultation for agreement in 2023.

For More Information and Support

You can find out more by going to the government information on the CCA Scheme at  https://www.gov.uk/guidance/climate-change-agreements--2 or please contact our specialist Dynamic ESG team by completing our online enquiry form here.