The application portal for the new Climate Change Agreements (CCA) scheme opens for new entrants on 1st May 2025. Here’s what you need to know.
What are Climate Change Agreements, and what’s changing?
Introduced in 2001, a Climate Change Agreement is a voluntary agreement between your business and the Environment Agency to reduce its energy use and carbon emissions. If the target is achieved, your business gets a rebate on the Climate Change Levy (CCL), a tax added to energy bills. The discount is up to 90% on the CCL for electricity, and 65% for other fuels.
The Department for Energy Security and Net Zero confirmed a new, six-year CCA scheme in October 2024. The updated scheme aims to further incentivise decarbonisation goals within intensive industry. Here’s what’s changing in the next phase:
- Target Period 1 begins on 1 January 2026.
- New agreements must be signed between existing sector associations and the Environment Agency.
- Targets will apply until the end of 2030.
- Organisations that meet their obligations will receive CCL relief until March 2033.
What if I’m an existing CCA participant?
You will not be automatically transferred to the new scheme, even if you are an existing participant. So, be sure to reconfirm your eligibility in advance of the next Target Period.
How do I apply to the CCA Scheme if I’m a new entrant?
New entrants to the scheme will be able to join from 1 January to 31 August each year during the scheme. An additional application window will be open from 1 May to 31 August 2025. This also marks the start of the first Target Period.
Entrants will not need to wait for a minimum period to receive CCL relief.
What about new sectors in the CCA Scheme?
We are still awaiting further information from DESNZ regarding new sectors. But, it’s anticipated that new sectors will not be able to join the scheme until 1 January 2027.
Why should I apply to the CCA scheme?
The CCA scheme offers tax incentives and relief for industrial energy efficiency. This, in turn, helps to lower costs for intensive industry while future-proofing organisations for the net
