The government is consulting until 11 June 2020 on proposals announced in Spring Budget 2020 to extend the current climate change agreement (CCA) scheme by 2 years and re-open the scheme to new entrants for a set period. The consultation also seeks views on potential reforms as part of a longer-term review of the scheme.
The current scheme began in April 2013, allowing participants from energy-intensive industries a reduced rate of 10% of the main rate of climate change levy until 2023, in return for meeting energy efficiency improvement targets.
Proposals to extend the current scheme would involve:
adding a new target period, from 1 January 2021 to 31 December 2022; and
extending certification for reduced rates of CCL for participants meeting obligations under the scheme to 31 March 2025.
The current scheme closed to new entrants on 31 October 2018. The consultation proposes to allow new facilities to join, provided they meet the criteria for an eligible facility in the new target period.
The government estimates these proposed changes to the existing scheme would result in a total annual saving of up to £300m for companies across the UK.
The government is consulting until 11 June 2020 on proposals announced in Spring Budget 2020 to extend the current climate change agreement (CCA) scheme by 2 years and re-open the scheme to new entrants for a set period. The consultation also seeks views on potential reforms as part of a longer-term review of the scheme.
The current scheme began in April 2013, allowing participants from energy-intensive industries a reduced rate of 10% of the main rate of climate change levy until 2023, in return for meeting energy efficiency improvement targets.
Proposals to extend the current scheme would involve:
adding a new target period, from 1 January 2021 to 31 December 2022; and
extending certification for reduced rates of CCL for participants meeting obligations under the scheme to 31 March 2025.
The current scheme closed to new entrants on 31 October 2018. The consultation proposes to allow new facilities to join, provided they meet the criteria for an eligible facility in the new target period.
The government estimates these proposed changes to the existing scheme would result in a total annual saving of up to £300m for companies across the UK.
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