Climate Change Agreement (CCA) Compliance

Climate change agreements are voluntary agreements made between UK industry and the Environment Agency. 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 energy consumption and CO2 emissions.

The current CCA scheme targets ended on 31st December 2024, with reduced CCL rates available until 31st March 2027 for those who meet their obligations.

New six-year CCA scheme

On 16th October 2024, the government confirmed a new CCA scheme for a further six years.  The start date of the first Target Period of the new scheme will be 1st January 2026.  Targets will be set until the end of 2030 and those meeting their obligations under the scheme will be eligible for reduced CCL rates until March 2033.

• Existing participating facilities: these won’t automatically be transferred to the new scheme – so it’s important to reconfirm eligibility, including 70/30 assessments to determine how much of your energy consumption is covered by the CCA.
• New entrants in existing sectors: New entrants may join between 1st May and 31st August each year, with no minimum period before being eligible for CCL relief.
• New sectors:  It’s likely that new sectors will not be able to join until 1st January 2027. We’ll update this page when we have more info.