Department of Energy and Climate Change

Guidance papers

Climate Change Agreements: guidance papers

The following guidance papers include more information about Climate Change Agreements (CCAs).

CCA-A01 is an index paper that summarises the purpose and content of CCA guidance papers (it expands on the information on this web page). The remaining papers are divided into six categories (A to F). They take applicants through a series of logical steps, including how to set up a CCA, eligibility criteria, making sure baseline conditions are established correctly, and how to report CCAs. There are also papers dealing with changes in circumstances and errors – including essential technical data.
 
 

Paper number
Title
Audience
(‘Op’ =  Operator, ‘SA’ = sector association)
Purpose
Index paper
SA/Op
Explains the aim and content of the guidance papers
Introduction
 SA/Op
Provides a general introduction to CCAs including essential guidance on how to apply for a new CCA
Setting up
Guidance on eligibility through IPPC criteria – definitions of installation and directly associated activities (DAAs)
Op
Outlines the eligibility criteria for IPPC processes and DAAs. Also includes industry examples of stationary technical units, and linked DAAs. Examples of linked processes that are not eligible are included
Guidance on eligibility through the energy intensity criteria
SA/Op
Aimed specifically at companies and sectors eligible to join an energy intensive (EI) CCA. Provides guidance on eligibility criteria for EI sectors and new entrants
Guidance on setting up hybrid targets
SA/Op
Explains how to set up new targets where there are eligible IPPC and EI processes on the same site. Includes worked examples
How to set up 90/10
SA/Op
Explains the basis of the 90/10 rule and how to apply it
Procedures for entrants and exits
SA/Op
Explains the procedures for making changes to umbrella and underlying agreements
Calculating and claiming discount – Her Majesty’s Revenue and Customs (HMRC) forms
Underlying participant’s agreement
Op
Generic underlying agreement, which specifies the targets for each participant
Underlying participant’s agreement
Op
Generic underlying EI agreement, which specifies the targets for each participant
Applicant’s eligibility form
Op
To be completed by applicants with facilities previously included in a CCA
Applicant’s eligibility form
Op
To be completed by applicants subject to IPPC criteria
Applicant’s eligibility form
Op
To be completed by applicants subject to EI criteria
Supporting analysis form
Op
Form to be completed for each supplier account and commodity a participant wishes to claim Climate Change Levy (CCL) discount on, to send to the energy supplier, copied to HMRC, (in conjunction with PP11)
Supplier’s certificate
Op
Certificate to be completed for each supplier account and commodity a participant wishes to claim Climate Change Levy (CCL) discount on, to send to the energy supplier, copied to HMRC
Reporting baseline conditions
Calculating trading group targets
SA
Explains how to calculate trading group targets, with examples
Measuring energy consumption
Op
Explains how operators should measure energy consumption. Includes advice on meter reading and dealing with errors and missing data
Accounting for renewables
Op
Explains how to account for renewable energy in CCAs and defines the eligible technologies
Guidance note on CHP
Op
Explains how to account for the use of CHP including a method for self-assessment
Guidance on auditing for SAs and operators
SA/Op
Explains what information SAs or operators have to keep for audit purposes
Reporting at target periods
Climate Change Agreements and emissions trading
SA
Explains how to assess facility and sector performance, and manage reconciliation. Explains trading and risk-management options, plus verification arrangements for associations and operators with a surplus to convert into saleable emissions trading (ET) allowances
Group verification under UK Emissions Trading Scheme (ETS)
SA
Gives an example of a standard data template, primarily for group verification by the sector association
Guidance on reporting and adjusting sector and target unit (TU) targets
SA
Explains how operator and sector targets are adjusted for carbon trading, and how to account for facilities joining or leaving an Agreement
Reporting at target periods
Guidance on how to apply risk-management options (relevant constraints)
Op
Explains how to deal with relevant constraints and how to account correctly for them
 
Accounting for the overlap between EU ETS and CCAs
Op
Explains how to account for EU ETS overlap in CCA reconciliation
Guidance on completing target period spreadsheet CCA10
SA/Op
Explains how to complete the spreadsheet, to record operator and sector performance at each target period. There are likely to be modifications to the CCA10 spreadsheet before each target period to accommodate changes such as the EU ETS overlap
Adjustment for fall in throughput for absolute targets
SA/Op
Explains the adjustments necessary for operators and sectors with absolute targets, if their throughput falls by 10 percent or more
Dealing with change
Handling structural change
SA/Op
Explains how changes to operators can affect CCA targets and what to do when these changes occur. Also explains how to establish or change targets when target units change
Termination form for ‘Option 2’ agreement holders
SA/Op
To be completed when a facility is no longer within a CCA, either by choice, or for failing to report data
Termination form for ‘Option 3’ agreement holders
SA/Op
As above
Variation form for ‘Option 2’ agreement holders
SA/Op
To be completed to notify DECC of any changes to an existing agreement (see CCA-E01)
Variation form for ‘Option 3’ Agreement holders
Sa/Op
As above
Technical information
Conversion factors and procedures
SA/Op
Contains essential background information on calorific and carbon conversion factors for different fuels, and procedures for calculating targets

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