Climate Change – Latest Developments

New Agreements (Phase 3)

In 2024, the UK government published details of a new six-year Climate Change Agreements (CCA) scheme, starting on January 1, 2026, to encourage energy and carbon savings through energy efficiency targets. The scheme aims to set targets until the end of 2030 and provide reduced Climate Change Levy (CCL) rates for those meeting their obligations until March 2033.

Key Aspects of the New CCA Scheme:

1. Start Date: January 1, 2026.
2. Target Period: The new scheme will set targets to the end of 2030.
3. Reduced CCL Rates: Those meeting their obligations under the scheme will receive CCL reduced rates until March 2033.
4. Background: The current CCA scheme was extended twice, initially to cover 2023 and 2024 (Target Period 6), and a consultation was launched to agree technical aspects of the extension, including any potential future scheme.
5. Purpose: The scheme aims to make energy and carbon savings through energy efficiency targets and encourage companies to reduce their carbon emissions.
6. Sector Involvement: The SEA will administer the Surface Engineering CCA and the Heat Treatment CCA.
7. Eligibility Requirements: Existing eligibility criteria have not changed for the new scheme
8. Base Year for the new scheme: 2022

Full details can be found at https://www.gov.uk/government/consultations/climate-change-agreements-consultation-on-a-new-scheme