Climate Change Agreements – Target Period 5 8th March 2021
Climate Change Agreements (CCAs) originally came into force in 2001 as the first response by the UK Government to meet the commitments of the Kyoto protocol and reduce UK Greenhouse Gas emissions.
As you may be aware, Target Period 5 has been added within the period of January 2021 and March 2023. Originally, this period was going to a period of no targeting but participants were allowed to continue to claim CCL relief whilst a new scheme was created and targets established. The no target period has been moved to Jan 2024—March 2025.
Key changes are:
- Addition of a further Target Period 5 to run from January 2021 – December 2022
- Extends Climate Change Levy relief for eligible CCA participants to 31 March 2025
- Amends the buy-out and penalty fees that apply to TP5 to £18/tCO2e
- Prevents the use of previously gained Carbon surplus to offset under-performance against TP5 targets
- Amends the base year to 2018 for TP5
The original eligibility criteria was limited to manufacturing processes described in the IPPC (now EPR) regulations, but there have since been a number of amendments to include specific energy-intensive manufacturing sectors such as heat treatment and plastics. More recently this has included data centres and cold stores.
Briar have been involved with Climate Change Agreements since their inception. We have assisted over 150 organisations in setting up individual CCAs and managing those agreements on an ongoing basis.
This includes performance monitoring against targets, periodic data submissions, structural changes, evidence packs, carbon buy-out, and much more.
With the changes to the base year and the impact of Covid 19, it’s more important than ever that you understand how these changes my affect your Climate Change Agreement reporting.
If you are already in a Climate Change Agreement and are worried how these changes may affect your business, please get in touch and we can discuss your requirements.
We can be contacted on 01384 397777 or email firstname.lastname@example.org
CURRENT MARKET POSITION
Wholesale energy prices fell early July on the back of improved supply to the UK and a strengthening of sterling, but recovered as the month came to a close.
As the month progressed, prices fell as the UK saw stronger Norwegian gas flows, LNG (Liquefied Natural Gas) arrivals and lower demand causing oversupply. Higher wind speeds mid month also helped to keep the markets low.
Prices started to recover mid month and continued to climb as Norwegian gas flows dropped and maintenance at Kollsnes was extended until early October. Oil prices also rose over the $50 mark following an announcement from Saudi Arabia that it would cut its exports to help accelerate the rebalancing of the global oil market.
Looking ahead UK gas production is expected to fall due to the start of major maintenance at the Forties platform but the UK is expecting around five LNG cargoes during August.