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Targets for new Climate Change Agreements

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12 September 2012

DECC agrees target through to 2020

We have agreed with DECC that the target saving for the new climate change agreement for the surface engineering sector will be 15% and for the heat treatment sector 18% by 2020 using 2008 as a base year. The Government remains committed to offering significant discounts to the Climate Change Levy for those energy intensive facilities which improve their energy efficiency and reduce carbon emissions.  Therefore, with the new Climate Change Agreements, DECC's aim continues to be to set challenging but realistic energy saving targets. Due to the certainty provided by the ten year extension of the scheme, Government expects significant investment in energy efficiency by CCA sectors. In particular, investment must encompass the implementation of efficiency measures with longer payback periods than previously covered by targets when the period of tax discount on offer was shorter. More investment will secure long term energy efficiency improvements and energy savings, supporting industrial growth in the long term, improving competitiveness and helping the UK meet its environmental commitments.

Further details of the new scheme will be announced as they are received from DECC following intensive consultation with industry.

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