Climate Change Agreements scheme: Applications open May 2025
The UK government’s Climate Change Agreements (CCA) scheme is getting a major refresh, with a new six-year phase confirmed to begin in January 2026.
If you’re an existing participant, you’ll need to reconfirm eligibility ahead of time. If you’re a new entrant, the 2025 application window is open from 1st May to 31st August. Here’s what you need to know.
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 new CCA scheme
In October 2024, the Department for Energy Security and Net Zero (DESNZ) confirmed a new six-year CCA scheme. 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.
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
Actions for existing participants:
- You will not be automatically transferred to the new scheme.
- 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 in place.
Actions for new entrants (in existing, approved 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 opens 1st May to 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
CCA scheme benefits
Joining or continuing with the CCA scheme can offer significant tax 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
Ready to start planning? Get in touch for no-obligation advice.
