Climate change agreements (CCA)
Produced in partnership with Angus Evers of Shoosmiths LLP
Climate change agreements (CCA)

The following Environment guidance note Produced in partnership with Angus Evers of Shoosmiths LLP provides comprehensive and up to date legal information covering:

  • Climate change agreements (CCA)
  • Brexit impact
  • What is the climate change agreement scheme?
  • Who administers the climate change agreement scheme?
  • What facilities are covered by the climate change agreement scheme?
  • What installations are eligible facilities?
  • What is the available climate change levy discount?
  • How does a company enter into an agreement?
  • What is required of a company that enters into an agreement?
  • Claiming relief from the climate change levy
  • more

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content. For further guidance, see: Brexit—impact on environmental law and Brexit Bulletin—key updates, research tips and resources.

What is the climate change agreement scheme?

The climate change agreement (CCA) scheme entitles eligible facilities to receive a reduced rate (discount) on the climate change levy (CCL). See Practice Note: Climate change levy.

CCAs are voluntary agreements that allow an eligible energy-intensive facility to receive up to 90% reduction in the CCL (and 100% reduction for energy used in certain energy-intensive (metallurgical and mineralogical) industrial processes), if it agrees to energy efficiency targets agreed with government.

CCA is defined in Schedule 6, paras 46–48 to the Finance Act 2000 (FA 2000). The CCA scheme operates under a two-tiered structure:

  1. umbrella agreements—the Department for Business, Energy and Industrial Strategy (BEIS) and industry sectors negotiate umbrella agreements. The agreement is then held between the sector or trade association and the administrator that contain sector commitments, obligations and administration procedures

  2. underlying agreements—individual agreements between the administrator and the operator of the eligible facility that set out the

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