Climate Change Agreement (CCA)
What are Climate Change Agreements (CCA's)?
Climate Change Agreements (CCAs) are voluntary arrangements between UK businesses and the government aimed at reducing energy consumption and lowering carbon dioxide (CO₂) emissions.
In return for achieving these energy-efficiency goals, eligible energy-intensive businesses can benefit from a significant discount on the Climate Change Levy (CCL), reducing their energy costs.
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Contact our compliance team to discuss your compliance requirements
Who is eligible for a CCA?
CCAs are available to businesses in energy-intensive industries, including sectors such as steel, chemicals, cement, and others that use high amounts of energy.
There are over 50 industrial sectors eligible to apply for a CCA, and businesses must join a sector association representing their industry to qualify. If your business is not listed as energy-intensive or has minimal energy use, it may not be eligible.
How to comply with CCA requirements
- Join a sector association:Businesses need to apply for a CCA through their relevant trade association.
- Agree to energy-efficiency targets:Once accepted, businesses must commit to meeting specific energy-efficiency or CO₂ emission reduction targets over set periods.
- Report energy use:Participants must monitor and report energy usage and CO₂ emissions regularly to ensure they meet agreed targets.
- Penality for non compliance:Businesses that fail to meet their targets may lose the benefit of reduced CCL rates.
How Equans can help
Equans offers expert guidance and comprehensive services to ensure your business remains compliant with CCA requirements. We understand that navigating the complex process of setting targets, reporting, and maintaining compliance can be challenging. That's why we provide tailored end-to-end support, allowing you to focus on running your business while we handle the regulatory details. Our focus is on helping you achieve long-term energy savings and enhancing your business’s environmental performance.
Our services include:
Target-setting and reporting: We work with you to develop realistic energy-efficiency targets and ensure all reports are submitted on time to the Environment Agency, keeping you on track with CCA obligations.
Energy performance analysis: Our team provides detailed insights into energy use, identifying key areas for improvement to help your business meet its targets more efficiently..
End-to-end compliance management: We offer a full-service solution, managing the entire CCA process from application to ongoing compliance with minimal disruption to your business operations. We monitor your energy usage, submit reports, and help you avoid penalties for non-compliance..
The benefits?
By participating in a CCA, your business can unlock several advantages:
- Significant cost savings: Receive up to a 90% reduction on electricity and up to 65% on other fuels under the Climate Change Levy (CCL).
- Improved energy efficiency: CCAs drive energy performance improvements, resulting in potential operational efficiencies and significant cost savings.
- Flexibility: Businesses can renegotiate energy efficiency targets every two years, offering the ability to adapt to changing business needs.
Looking ahead - The future of CCA's
The CCA scheme has been extended until 2025, giving organisations the opportunity to continue benefiting from reduced CCL rates while contributing to the UK's broader climate goals under the Clean Growth Strategy.
This extension ensures businesses can maintain energy-efficiency improvements and support the government's aim to increase energy productivity by at least 20% by 2030
Get in touch today
If you're ready to explore how CCAs can benefit your business or need assistance with compliance, we’re here to help.
Contact our team today to learn more about how we can support your energy-efficiency goals while maximising cost savings under the CCA scheme.
Energy Compliance Services
Equans' energy compliance team can help ensure you are compliant with any mandatory or voluntary compliance schemes.