CCA scheme opens to new entrants until March 2022

The government has announced it will reopen the Climate Change Agreements (CCA) scheme to new entrants.   

The short window to apply ends on 31st March 2022, and new entrants will be eligible to receive reduced rates on the Climate Change Levy (CCL) through to 31 March 2025.  

Interim measure

The CCA scheme in its current form is set to close, but the government is consulting on a new CCA scheme, which will be agreed in 2023.  

The reopening of the current scheme to new entrants is a measure to ensure that eligible facilities have an opportunity to join and benefit from the reduced rates of CCL without having to wait until the new scheme comes into play. 

What is the Climate Change Agreements (CCA) Scheme?

The Climate Change Agreements (CCA) scheme was first established in 2001, and serves the dual purpose of making energy and carbon savings through energy efficiency targets whilst also helping to reduce energy costs in eligible industrial sectors by providing a significant discount to participating businesses on the Climate Change Levy (CCL).  

The targets provide a basis on which organisations can make improvements to the energy efficiency of their facilities over a set period, in return for reduced rates worth in total an estimated £255m annually on their Climate Change Levy bills. Participants can also see significant energy bill savings from the energy efficiency improvements they make towards these targets. The CCL discount currently stands at 92% for electricity and 83% for gas. 

Who is eligible to apply for the CCA scheme?

The scheme is open to businesses in a wide range of industrial sectors with energy-intensive processes, such as chemicals, paper and ceramics to agricultural businesses such as intensive pig and poultry farming.  

Deadline to apply for the CCA scheme

The CCA scheme application window officially closes to new entrants on 31st March 2022. However, the deadline might be earlier: applications are made via the relevant industry sector association, and each have set their own cut-off date. It is worth getting in touch with your industry body to check.  

To read more about the benefits of the CCA scheme and how to apply, read BiU’s short guide