Ensure your organisation meets the deadlines and requirements for Climate Change Agreement (CCA) applications in 2023
Climate Change Agreements (CCAs) are a crucial instrument for organisations seeking to reduce energy costs and improve energy efficiency. A CCA encourages energy-intensive industries to improve their energy efficiency and reduce greenhouse gas emissions. In exchange for meeting agreed-upon targets for energy efficiency or carbon emissions reduction, participating organisations receive a significant discount on the Climate Change Levy (CCL), a tax applied to energy use by businesses.
To be eligible for a CCA, an organisation must operate in a qualifying energy-intensive sector, such as manufacturing, chemicals, or food processing, and meet certain energy consumption or emissions thresholds. By participating in a CCA, organisations can benefit from reduced energy costs, improved energy efficiency, and contribute to the UK's efforts to combat climate change.
With new applications accepted between 1st May and 30th September 2023, it is essential for organisations to be aware of the deadlines, eligibility criteria, and data requirements to ensure a successful application process.
- Any new applications accepted between 1st May and 30th September 2023,
- Trade associations must receive applications by 31st August 2023 to process them before the deadline.
Targets and Eligibility Criteria:
- A single target period of 12 months (Jan 2024 - Dec 2024) will apply, requiring a percentage improvement in primary energy per unit of production from a 2018 base year.
- The exact target will not be known until negotiations between DESNZ and trade associations occur, likely around October.
- Eligibility criteria remain unchanged, with the most relevant source being Appendix A of the CCA Operations Manual. (Please see link)
- Sites not meeting the 70% threshold for full eligibility should not pursue applications, as there is insufficient time to install necessary sub-metering for partially eligible sites.
To complete the application, organisations must provide:
- Energy and production data for calendar years 2018 (base year) and 2022 (eligibility).
- A copy of the EPR permit, if the site has one.
- Site plans, descriptions of manufacturing processes, and process flow charts.
- Nominations for a "Responsible Person" (Director or equivalent) and an "Admin Contact."
- The company's VAT number.
Get in touch with Briar today and we can discuss how we can take your organisation through the process.