Climate Change Agreement Scheme

The Department of Energy and Climate Change and industry have negotiated energy efficiency targets for each sector – the sector`s commitment. The objectives were then incorporated into framework agreements between inter-professional organisations and the Environment Agency. Umbrella agreements also list processes that are eligible for a CCA. In 2020, the BEIs negotiated new targets for 2021 and 2022. We will continue to assess the goal and direction of a long-term system after the extension. The government will soon confirm an additional commitment schedule for the future of the CCA program. 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. The government`s response contains a general summary of the answers after the questions, followed by the government`s response in all cases. We have included a summary of the responses to the demand for evidence of future reform of the system, but no decision has yet been made on a future CCA system. 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. We will implement the changes listed in the government`s response to the extension of the Climate Change Treaty (CCA), including the definition of the necessary legislation.

BEIS and the Environment Agency (EA) will provide more detailed information on new/different thinking objectives and agreements. 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 are looking for questions on a proposal to renew the climate protection system (CCA) and on possible reforms if there was a future CCA system. With respect to the extension of the system, we have indicated that we will be presenting updated guidelines in early 2021. We have also clarified energy efficiency targets and deadlines. How climate change agreements (CCA) work, which is eligible and which inter-professional organizations have a CCA.