Climate Change Agreements

What are climate change agreements?

Cement factory

DECC has recognised the need to give special consideration to energy-intensive industries with regards to climate change, given their energy use and their need to compete internationally.

Consequently, energy-intensive industries can obtain a 65% discount from the Climate Change Levy, provided they meet challenging targets for improving their energy efficiency or reducing their carbon emissions.

Climate Change Agreements (CCAs) set the terms under which eligible companies may claim the levy reduction.

 

Latest news

14 December 2012: CCA draft Technical Guidance: opportunity to comment

As previously announced the draft operational technical guidance is now available for comment and can be found on the Guidance papers page. The guidance directly corresponds to the finalised Umbrella and Underlying Agreements and sets out new standardised methodologies for the completion of activities within the new CCA Scheme. Accompanying the guidance is a statement from DECC, which further explains amendments to the agreements and details the ‘next steps’ for CCA participants.

Please also see below for the final versions of the Umbrella and Underlying Agreements:

If stakeholders wish to comment on the draft technical guidance they can do so by email to levy.agreements@decc.gsi.gov.uk. The closing time and date for comments is 6pm, 14th January 2013.


7 December 2012: Closure of UK Emissions Trading Registry

With effect from 07 December 2012 the Greenhouse Gas Emissions Trading Scheme has been amended to reflect the closure of the Registry. Published alongside this is authority on behalf of the Secretary of State to effect the change.

Full details can be found on the UK Emissions Trading Scheme web page.


26 October 2012: CCA Umbrella and Underlying Agreements templates published

Following two consultations on the form and content of Climate Change Agreements in March 2010 and March 2012, Umbrella and Underlying Agreements have now been amended.

Government has taken into account stakeholder responses to the two consultations and other stakeholder feedback as part of the ongoing engagement on the new CCA scheme starting in April 2013.

Any operational technical details regarding the new CCA scheme will be outlined in ‘technical guidance’. This guidance will be published on both DECC’s CCA web page and on the Environment Agency (EA): Climate Change Agreements (CCA) Scheme web page in December 2012. An opportunity to comment will be provided.

If stakeholders wish to comment further on the Umbrella and Underlying Agreements they can do so by sending an email to levy.agreements@decc.gsi.gov.uk. The closing date for comments is 16th November 2012.


01 October 2012: CCA Administrative Regulations 2012 now in force
The CCA Administration Regulations 2012 came into force on 1st October 2012. They appoint the Environment Agency  as CCA administrator for the next phase of the scheme, applying to CCAs from the 1st April 2013.The Department of Energy and Climate Change will retain the administrative role for CCAs until the end of the current scheme (March 2013). View the published version.

Visit the Environment Agency CCA web pages to find out more about the new scheme and find out when further information will be available.


19 July 2012: Government response to the January and March 2012 consultations & draft eligibility regulations
This responds to stakeholder comments made on both January and March 2012 publications. Final decisions have now been made by Government on policy direction for the scheme. Full details are on the Climate Change Agreements: delivering simplification in the new scheme consultation page.

Accompanying the response is the Climate Change Agreements draft (Eligible Facilities) Regulations 2012. Any comments on the draft regulations can be sent to ccaconsultation@decc.gsi.gov.uk. The closing date for comments will be 14 September 2012.

Contact us
Tel: 0300 068 6447/6873
Email: ccaconsultation@decc.gsi.gov.uk
Post: CCA Team
Department of Energy And Climate Change
3 Whitehall Place
London
SW1A2AW


Structure

CCAs have a two-tier structure:

  • sector-level agreements between DECC and the sector or trade association (known as umbrella agreements). These set out sector targets, the sector and DECC's obligations, and the procedures for administering the agreements.
  • individual agreements between DECC and the facility operator (known as underlying agreements). These set out the targets the facility needs to meet, the operator and DECC's obligations, and the procedures for administering the agreements.  

Climate change agreements (CCAs) allow eligible energy-intensive businesses to receive up to a 65% discount from the Climate Change Levy (CCL) in return for meeting energy efficiency or carbon-saving targets.

Contacts

Department of Energy and Climate Change (DECC) Industrial Energy Efficiency
Department of Energy and Climate Change
Area 1A
3 Whitehall Place
London
SW1A 2AW
Email: levy.agreements@decc.gsi.gov.uk
Tel: 0300 068 6810 / 6873
HM Revenue and Customs Email:
See HMRC website
Tel: 0845 010 9000
CHPQA – Quality Assurance for Combined Heat and Power Email: chpqainfo@chpqa.com
Tel: 0870 190 6196

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