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Climate Change Agreement Scheme

Climate Change Agreement Scheme

The Spring Budget announced in March a measure to extend the plan, followed by a consultation on the implementation of the plan. In its formal response to the consultation published last week, the EIB states that it will not reform the eligibility criteria for the extension or that it will thoroughly review existing rules and procedures for the transition period. New entrants can apply to join existing inter-professional agreements and the application deadline has been extended to November 30, 2020. The CCA programme, first launched in 2001, aims to encourage energy and CO2 savings by setting energy efficiency targets, while helping to reduce energy costs in energy-intensive sectors, by providing a substantial discount on the climate-change tax (CDC). The current targets provide a basis for organisations to improve the energy efficiency of facilities contained in agreements over an eight-year period to ensure their contribution to the UK`s objectives in exchange for a saving of almost $300 million per year. How climate change agreements (CCA) work, which is eligible and which inter-professional organizations have a CCA. The consultation also provided an overview of how a future CCA programme beyond March 2025 could make better use of taxpayers` money and support the UK`s commitment to net zero. The responses stressed that a reformed future industrial system could contribute to the transition to net zero, while supporting the competitiveness of businesses. Respondents also spoke about the eligibility criteria for a future system, the need to support both energy efficiency and CO2 savings, and the potential for simplification of future systems and the political landscape.

We provided a link to the BeiS consultation on extending the CCA system for a period of two years. The consultation ends on June 11, 2020. As part of the consultation, it is also proposed to reopen the scheme to new entrants and allow operators to apply immediately to the scheme. The government expects applications for newcomers to close again on September 30, 2020. This should allow the Environment Agency (EA) sufficient time to assess all applications before the start of Target Period 5. Climate change agreements are voluntary agreements between UK industry and the Environment Agency to reduce energy consumption and carbon dioxide (CO2) emissions.


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