Apply for the Climate Change Agreements scheme before August 2025 deadline
Concept is urging energy intensive organisations to join the new Climate Change Agreements Scheme (CCA) before the 2025 application window closes, to receive a significant discount on electricity and gas bills.
The new target period begins on 1st January 2026, and is open to new entrants in eligible sectors if they apply before 31st August 2025.
Please note that existing participants will not automatically be transferred to the new scheme and will need to reconfirm eligibility.
What are Climate Change Agreements?
CCAs are voluntary agreements between energy-intensive businesses and the Environment Agency. Organisations in eligible energy-intensive sectors receive a rebate on the Climate Change Levy (CCL) – a tax on their electricity and fuel bills – in return for committing to energy targets that reduce consumption and CO2 emissions.
The scheme has recently had a major refresh, with a new six-year phase confirmed to begin in January 2026.
Here’s a breakdown of what’s new:
- Target Period 1 will start on 1st January 2026
- New agreements must be signed between sector associations and the Environment Agency
- Targets will run until end of 2030
- Those who meet obligations will receive CCL relief until March 2033
How much could I save on CCL relief?
The government estimates that collectively, it will be worth around £1.9bn in CCL reduced rates for participants over the six years of the scheme.
Most sectors can save up to 92% on electricity CCL costs (up to 100% relief for mineralogical and metallurgical sectors), and 83 – 89% on gas CCL costs.
The individual savings depend on the size of your organisation – but they are significant. The Chemical Industries Association estimates that businesses in its sector could save around £25,000 per year for small firms, and around £2.5 million for large firms.
Is my organisation eligible for a CCA?
To hold a CCA, a business must carry out one or more eligible processes – outlined in the official CCA operations manual. These cover a range of energy-heavy industries, including glass, brewing, textiles, data centres, food and drink.
Energy that is not used by the eligible process may only be included by applying the “70/30 rule”. This rule allows the energy used by an entire site to be included in the CCA if the non-eligible energy is less than 30% of the total primary energy used at the site.
Actions for existing CCA participants:
You will not be automatically transferred to the new scheme, so:
- You must reconfirm eligibility — including your 70/30 assessments (to show how much of your site’s energy use is covered by the CCA).
- The scheme administrator will audit a proportion of sites, so it’s essential to have strong processes and supporting documentation in place.
Actions for new entrants (in existing sectors):
- You’ll be able to join the scheme between 1 January to 31 August in every year throughout the scheme.
- An extra application window is open now – closing on 31st August 2025, allowing you to join from the start of the first Target Period.
- You won’t need to wait a minimum period before being certified to receive CCL relief.
New sectors
DESNZ plans to open the CCA scheme up to new sectors – we’re awaiting a further announcement on this. It’s likely that new sectors won’t be able to join until 1st January 2027
What is the CCA application process?
- Check eligibility: Ensure your business operates an eligible energy-intensive process (refer to Appendix A of the CCA Operations Manual).
- Contact your sector association: Applications must be submitted via your sector association, which manages CCAs for your industry.
- Prepare the required information: This includes:
- Facility and site details
- Environmental permits
- Process flow maps and site plans
- Energy usage data
- Submit application: Your sector association enters your details into the CCA register. The Environment Agency or a technical facilitator will assess your application.
- Approval: If approved, you’ll receive a CCA document via email. Your responsible person must confirm acceptance via email (this is legally binding). Once confirmed, your agreement goes live on the CCA register.
Advice and support
As we’ve explained, joining or continuing with the CCA scheme can offer significant CCL savings – helping to ease the burden of high energy costs. At the same time, it’s an opportunity to sharpen your energy management strategy and invest in performance improvements that will create further energy cost savings.
Concept has helped businesses across multiple sectors navigate CCA compliance — and we’re here to support you through the next phase. Our services include:
- Confirming eligibility and conducting 70/30 assessments
- Managing the application and renewal processes
- Energy monitoring, reporting, and CCA-compliant documentation
- Metering strategy and project management for sub-metering installations
- Identifying energy-saving opportunities to help you meet your targets
Get in touch with our CCA compliance team for no-obligation advice, or for support in meeting the 31st August 2025 application deadline.
