Climate Change Agreements

What are climate change agreements?

Cement factory

DECC has recognised the need to give special consideration to energy-intensive industries with regards to climate change, given their energy use and their need to compete internationally.

Consequently, energy-intensive industries can obtain a 65% discount from the Climate Change Levy, provided they meet challenging targets for improving their energy efficiency or reducing their carbon emissions.

Climate Change Agreements (CCAs) set the terms under which eligible companies may claim the levy reduction.

 

Structure

CCAs have a two-tier structure:

  • sector-level agreements between DECC and the sector or trade association (known as umbrella agreements). These set out sector targets, the sector and DECC's obligations, and the procedures for administering the agreements.
  • individual agreements between DECC and the facility operator (known as underlying agreements). These set out the targets the facility needs to meet, the operator and DECC's obligations, and the procedures for administering the agreements.  

Climate change agreements (CCAs) allow eligible energy-intensive businesses to receive up to a 65% discount from the Climate Change Levy (CCL) in return for meeting energy efficiency or carbon-saving targets.

Contacts

Department of Energy and Climate Change (DECC) Industrial Energy Efficiency
Department of Energy and Climate Change
Area 1A
3 Whitehall Place
London
SW1A 2AW
Email: levy.agreements@decc.gsi.gov.uk
Tel: 0300 068 6810 / 6873
HM Revenue and Customs Email:
See HMRC website
Tel: 0845 010 9000
CHPQA – Quality Assurance for Combined Heat and Power Email: chpqainfo@chpqa.com
Tel: 0870 190 6196

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