Environmental Services

Climate Change Agreement (CCA)

What is a Climate Change Agreement?

A Climate Change Agreement enables a qualifying business to receive significant discounts on the CCL (Climate Change Levy) energy charges. The maximum discounts level currently available are:-

  • Electricity – up to 90%
  • Gas – up to 65%

Who is Targeted?

Climate Change Agreements are targeted at energy intensive organisations (as opposed to CRC which is aimed at non-energy intensive organisations).

Qualification is managed via “Umbrella Agreements” held between the Environmental Agency and eligible sectors – of which there are over 50, including:-

  • British Plastics Federation (BPF)
  • British Printing Federation (BPIF)
  • Chemical Industries Association (CIABATA)
  • Food & Drink Federation (FDF)
  • Food Storage & Distribution Federation (FSDF)
  • Packaging & Films Association (PAFA)
  • Surface Engineering Association (SEA)

Umbrella Agreements also list the processes that are eligible for a CCA.

The onus is on individual businesses to determine if they have any qualifying processes and, if so, which would be the most suitable Sector / Trade Association to process and sustain its CCA application with.

Umbrella Agreements commit each Sector / Trade Association to achieving a set of commitments and, in turn, “Underlying Agreements” are agreed with individual businesses to achieve direct performance improvement targets. Businesses must meet these targets in order sustain their CCA levy discounts.

The current CCA scheme runs from 1st April 2013 to 31st March 2023 and set much more demanding carbon emission reduction targets than its predecessor, with an increased cost for carbon credits. These carbon credits can obviously reduce the overall value gained from the CCA levy discount.

What is involved?

Each year an Annual Report will need to be submitted to the relevant Trade Federation.

Alongside this overall objective are a number of mandatory supporting tasks:-

  • Monthly Energy & Production data collation
  • Maintain Evidence Pack
  • Monitor & Report on Target Progress
  • Document any production line additions / changes

Where the required targets are achieved, the CCA levy discounts remain unaffected & the full financial benefit is secured. Where targets are missed, a “Buy Out” purchase of carbon credits may be necessary which will reduce the overall financial benefit gained.

Our Services - How can we help?

Our services can encompass some or all of the following:-

  • Eligibility Qualification – Informed can provide guidance on the scope of any new applications by assessing potential qualification processes, the size of a CCA levy benefit and the most suitable Sector / Trade Federation for the application to be progressed with.
  • Initial CCA Application – managing this through to implementation.
  • Strategic Planning – with the aim of ensuring the milestone targets get achieved and / or determining the associated risks and potential carbon credit costs.
  • Monthly Data Gathering & Reporting – to track performance and pro-actively manage any predicted shortfalls in performance.
  • Evidence Pack – management of the required data.
  • Annual Reporting to Sector / Trade Federation – as required.
  • Professional Updating – on any scheme changes, with particular emphasis on each new phase developments.