Climate Change Agreement

Climate Change Agreement

Climate Change Agreement (CCA) is a voluntary UK scheme with a dual purpose of protecting energy intensive sectors in the UK subject to overseas competition and driving improvements in energy efficiency within those sectors. Over 50 industry sectors are covered by the scheme which has been running since 2001. In return for meeting certain efficiency targets, financial relief is given in the form of a reduction, or exemption, in ‘carbon’ taxes such as the ‘Climate Change Levy (CCL) and Carbon Reduction Commitment Energy Efficiency Scheme (CRC)’ – worth over £22.5 million a year across the sector. CCL accounted for the larger share (roughly 57%) as it covers electricity, gas, oil and LPG whereas CRC is only applied to electricity and gas.

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