The Climate Change Agreements (CCA) are once again open to new applicants seeking financial aid in energy-intensive spheres through March, 2025. As the government places climate change higher up the political agenda, and with Climate Change Levy (CCL) rates on the rise, it’s a great time for energy-intensive industry businesses to join this voluntary scheme.
Get tax relief of up to 90% reductions on your Climate Change Levies when you commit to an energy-efficiency target.
Compliance with any law or regulation can be difficult to achieve without an in-depth knowledge of the guidelines. By enlisting our expertise, you’ll enjoy greater peace of mind knowing that your business will be CCA compliant without question.
Professional Energy Services (PES) will support you from start to finish as our carbon consultants handle your application to the CCA scheme. From collecting evidence and data analysis through to final documentation, we’ve got your covered. By selecting PES to handle your CCA application, you will receive:
An expert who is fully up to date on any energy legislative changes and related climate change policies
PES has helped hundreds of businesses across the UK substantially reduce their energy costs by managing CCAs on their behalf. Get in touch today to learn more about how our range of solutions might benefit your business.
The Climate Change Agreements (CCAs) were introduced several years ago in the United Kingdom as voluntary agreements, allowing eligible energy-intensive industries to receive a substantial reduction on the Climate Change Levy (CCL) by committing to pre-set energy efficiency targets. Organisations holding a CCA will receive a reduction of up to 92% on electricity bills and up to 83% on gas bills on their Climate Change Levy (CCL) dues. Certain manufacturers within the mineralogical and metallurgical sectors may even be eligible for up to 100% relief.
The re-enactment of the CCAs stems from a hard-fought battle against climate change, and from Climate Change Levy rates increasing. The result of greater business participation is the contribution towards the reduction of global carbon dioxide and fossil fuels emissions in exchange for tax perks.
Companies eligible for CCAs are those that carry out certain eligible activities or processes at a site which is deemed to be energy-intensive by the National Environment Agency. Such activities may include plastic moulding, metal packaging, and intensive farming.
At a time where many businesses are tracking their spending and looking for ways to save, joining the CCA scheme is a great opportunity for businesses with energy-intensive processes to save money and be eligible for tax advantages, in addition to the energy-intensive industry (eii) scheme.
CCAs and the CCL have a classic chicken-and-egg relationship, with the CCAs stemming as a solution to the financial burden that the CCL imposed on energy-intensive industries.
What is the Climate Change Levy (CCL)?
The Climate Change Levy (CCL) is an environmental tax that is imposed on any non-domestic organisations (such as businesses, institutions and not-for-profits) for their energy usage. The tax is paid at the main rate or Carbon Price Support (CPS) rate. Business energy suppliers are responsible for charging their customers CCLs due to them providing a taxable commodity.
CCAs are different
Alternatively, CCAs reward businesses and organisations when they reduce their carbon footprint to meet global climate change obligations. Participation in the CCA offers real tax relief advantages, especially since prices for taxable commodities are on the rise.
To remain eligible and receive price deductions on the CCL, participants must meet their targets to the satisfaction of the Environmental Agency each reporting period. Non-compliance may result in penalties.
By participating in the CCAs, businesses are encouraged to improve energy efficiency with targets and financial penalties for non-compliance.
We are currently in the second phase of the scheme (April 2013 – June 2023), and with continuous changes unfolding. The Environmental Agency (EA) has cracked down on enforcement of the rules, targets have been reset, and penalties are higher than they once were.
In light of these changes, managing CCAs is a more complicated than it has been in the past. The EA and HMRC require increasingly comprehensive evidence, and have already started audits and penalties. These fines are too steep for businesses to risk non-compliance due to otherwise avoidable misinterpretations.