The Department for Business, Energy and Industrial Strategy (BEIS) has recently announced that it is opening the Climate Change Agreement (CCA) scheme, based on existing eligibility rules, to new entrants during a short window which will end on 31 March 2022.
CCA is a voluntary scheme available to specific industries in the UK and you can review the list in the consultation report noted below. Businesses that have sites with operations that are eligible and sign up to a CCA, benefit from a reduced Climate Change Levy (currently a reduction of 92% for electricity and 83% for gas) in return for committing to energy efficiency measures.
For the right businesses, it is a great opportunity to save while investing to reduce energy consumption, cost and importantly emissions, and will be a great financial support to any business setting a course for net zero.
New entrants will be eligible to receive the reduced rates of CCL through to 31 March 2025, provided they meet the agreed targets. The process will be as per previous periods for new entrants. With a short-term deadline for receipt of applications through relevant trade bodies, we are here to help with an accelerated assessment and application process for interested and eligible clients.
A list of relevant industries can be found on pages 26-28 of this BEIS consultation document: Climate Change Agreements: Proposals for a future scheme
If you think you might be eligible, or require support determining eligibility, our compliance team are on hand to help.
Your relevant sector association will have a deadline well before 31st March 2022, with some already indicating 25th February 2022 deadlines, and the application process can take several months. With investors demanding more sustainable growth in business, make sure you are not at the back of the queue in your sectors association assessments, to reduce the risk of missing the scheme deadline.
We have been supporting our clients in determining the best route to obtain a CCA, providing ongoing management to ensure that all relevant submissions are in place to maintain a CCL discount and track progress against the targets set.
Find out how we supported one plastics injection moulding company that achieved £300,000 in annual savings by reading our case study here: CCA and EII Exemption Savings
Please do get in touch if you require any CCA compliance assistance. Our sustainability and compliance experts would be glad to assist.