Climate Change Agreement Scheme Extended until 2027
The Spring Budget 2023 announced that the Climate Change Agreement (CCA) scheme has been extended until March 2027. All currently qualifying businesses will gain an extra two years of support while thousands more are now eligible.
This means an organisation like yours could qualify for CCL savings of up to 92% – but the clock is ticking. Applications for new entrants were open from 1st May to 30th September 2023. Not sure if your organisation falls under the scheme criteria? Don’t delay – talk to one of our consultants before the deadline passes.
Starting your CCA journey is simple
Check eligibility
The first step is understanding if your business qualifies. Speak to one of our CCA experts today and we'll quickly ascertain if you meet the criteria, as well as what level of support you can expect to receive.
Avoid admin overload
All applications will be processed by a relevant trade association. We'll help you meet their standards and the necessary compliance, alleviating the administrative burden that comes with applying.
Act quickly
There's only a short window of time available for applications, five months from May to September 2023. Certain trade associations also require you to submit your application up to four weeks beforehand; so don't delay.
Significant cost saving opportunities
The Climate Change Agreement, first established in 2001, is an innovative government initiative. It's designed to reward eligible industrial sectors that make measurable changes to reduce carbon emissions with considerable discounts on their CCL charges.
Qualifying companies that meet targets and other obligations under the scheme, will receive reduced CCL rates until the end of the current scheme which has been extended until March 2027. Participants will also see significant energy bill savings from the energy efficiency improvements they make towards these targets.
The Government has temporarily reopened the CCA scheme for new applications, with the applications period 1st May 2023 to the 30th September 2023.
Significant cost saving opportunities with the climate change agreement scheme
The Climate Change Agreement, first established in 2001, is an innovative government initiative. It's designed to reward eligible industrial sectors that make measurable changes to reduce carbon emissions with considerable discounts on their CCL charges.
Qualifying companies that meet the scheme’s targets and obligations will receive reduced CCL rates until the end of the extended scheme in March 2027. Participants can also benefit from significant energy bill savings resulting from energy efficiency improvements made to meet these targets.
The government temporarily reopened the CCA scheme for new applications, with the application period running from 1st May to 30th September 2023.
Benefits of a CCA
- Energy efficiency: Gain considerable savings on your energy bills through the energy efficiency improvements made towards these targets.
- Reduce carbon impacts: Make proactive steps to reduce your carbon footprint and stride towards an energy-efficient, low-carbon future.
- Meet net zero objectives: Take positive action to tackle climate change and meet your net-zero targets.
- CCL savings: Benefit from a significant discount to participating businesses on the Climate Change Levy (CCL) paid. Savings are up to 92% on electricity, 83% on gas and 77% on LPG.
New Climate Change Agreement Scheme updates for 2024
Consultation results and scheme extension until 2033
The recent government consultation on the CCA scheme brings exciting updates. The scheme will now run for six years until 2033, offering £310 million in annual CCL relief during 2027-29, with an estimated £1.9 billion in total savings.
Key updates include a new eligibility re-confirmation process, streamlined facility-level reporting, and adjustments for sectors with high energy intensity like cement, steel, and food production.
New businesses in existing eligible sectors may apply starting in May 2025, while newly eligible sectors will join in 2027.
Our approach to the CCA Scheme
Advise
Advise on any corrective action, with on-going application maintenance to ensure compliance.
Assess
Assess your eligibility for the scheme and calculate the likely CCL cost savings.
Apply
Complete and submit the application on your behalf.
Review
Liaise with the relevant agencies and address any issues.
Report
Publish a periodic report, detailing performance against agreed CCA targets.
John Cotton
Trident has been managing John Cotton’s current Climate Change Agreement since 2007, helping them to secure a rebate of c.£1,400,000.