Climate Change Agreements (CCAs) help energy-intensive businesses reduce carbon emissions and improve energy efficiency.
In return for meeting agreed energy-reduction targets, organisations benefit from a significant discount on the Climate Change Levy (CCL) applied to electricity and fuel bills, helping to lower operating costs while supporting sustainability goals. Here at Consultiv Utilities, we provide expert support for Climate Change Agreements, helping businesses maximise savings while remaining fully compliant.
Our specialists assess eligibility, manage CCA applications, support target-setting, and handle monitoring and reporting obligations on your behalf.
A Climate Change Agreement (CCA) is a voluntary contract between the UK government, sector associations and energy-intensive businesses to improve energy efficiency and reduce carbon emissions.Â
CCAs aim to help industries lower their environmental impact while maintaining economic competitiveness. They involve setting and achieving energy efficiency goals over a defined period, with regular monitoring and reporting to ensure compliance. CCAs are part of the UK’s broader strategy to mitigate climate change and support sustainable industrial practices.
CCAs involve complex eligibility rules, strict reporting requirements and ongoing compliance. Failure to meet targets can result in financial penalties or the loss of CCL discounts.
By working with Consultiv Utilities, your business can simplify CCA compliance, reduce administrative burden and unlock valuable savings while achieving your net-zero and wider sustainability objectives.
Businesses entering into a Climate Change Agreement (CCA) must commit to improving energy efficiency and reducing carbon emissions in line with UK government requirements.Â
CCAs typically apply to energy-intensive businesses, such as manufacturers, data centres and large industrial sites, where energy makes up a significant part of operating costs.
To remain compliant, businesses are required to:
Failure to meet CCA targets can result in financial penalties or the loss of Climate Change Levy (CCL) discount benefits.
We support businesses at every stage of CCA compliance, starting with an eligibility assessment and target-setting to ongoing monitoring, reporting and audit support.Â
By participating in a CCA, your business can benefit from::
Consultiv Utilities can help your business to unlock these benefits by identifying savings opportunities and efficiently managing the compliance requirements.
CCAs are overseen by UK government bodies, including DEFRA, the Environment Agency, and approved sector associations.Â
If your business fails to meet the agreed targets:
Consultiv Utilities acts as a trusted compliance partner, liaising with sector associations and regulatory bodies on your behalf.Â
Our expert team ensures accurate reporting, mitigates compliance risks and helps businesses stay aligned with government requirements.
Climate Change Agreements (CCAs) are managed by the Environment Agency in England.Â
This agency oversees setting energy efficiency targets, tracking progress, and verifying data. They ensure businesses meet the terms of their agreements.Â
Sector associations or trade bodies help businesses in specific industries apply for and manage their CCAs. This setup helps the UK achieve its climate change and energy efficiency goals.Â
Consultiv Utilities works alongside businesses and sector associations to manage the practical and technical aspects of CCA compliance. Let us help you understand your CCA eligibility today.Â
CCAs are designed for energy-intensive organisations operating in regulated sectors. Your business may be eligible if you:
Eligible sectors include, but are not limited to:
If you’re unsure whether your sector qualifies, we can assess your eligibility and confirm whether a CCA is appropriate for your business.
Applying for a CCA involves the following steps:
A Climate Change Agreement is a voluntary UK government scheme that allows eligible energy-intensive businesses to receive reduced Climate Change Levy (CCL) rates in exchange for meeting agreed energy-efficiency or carbon-reduction targets.
Here are the key principles of this rule:
If an installation consumes 70% or more of the site’s total primary energy (also known as reckonable energy), the operator can claim that all of the site’s energy consumption qualifies as part of the eligible facility.
If the installation consumes less than 70% of the site’s primary energy, the operator can still claim the installation’s energy consumption. They can also claim the energy used by other activities on site, up to an extra 3/7ths of the installation’s energy consumption, as part of the eligible facility.Â
To apply the 3/7ths provision, both the installation and the additional energy must be separately sub-metered. It’s important to note that this additional 3/7ths energy cannot be added during the last two months of a Target Period within the CCA.
In the Spring Budget of 2023, the UK Government announced a two-year extension of the Climate Change Agreement (CCA) scheme, extending it until March 31, 2027.Â
As such, CCA participants who achieve the set energy efficiency targets will qualify for reduced Climate Change Levy (CCL) rates in the fiscal years 2025-26 and 2026-27. The extension will also be available to new participants in sectors that are currently eligible.
Failure to meet targets can result in penalties, corrective action plans or the withdrawal of CCL discounts.Â
Consultiv Utilities helps mitigate this risk by proactively monitoring performance and supporting corrective actions.
Reporting typically occurs annually, but specific requirements will be outlined in your agreement.
CCAs are designed for energy-intensive organisations, including manufacturers, processors, data centres and industrial operators.
If energy costs form a significant part of your overheads, your business may be eligible. We can assess your eligibility and confirm whether a CCA is suitable for your business.Â