Climate Change Agreements (CCAs) extended to 2027
Climate Change Agreements were first established in the early 2000s after the introduction of the Climate Change Levy. Their purpose is to encourage greater uptake of energy efficiency measures among companies in energy-intensive industries and to relieve competitive distortion brought about by an additional tax on UK industry. They set energy reduction targets for businesses which can result in a significant discount on the Climate Change Levy on energy bills.
The original scheme was set to close in 2018 but has since been extended twice, firstly out to 2025 and then most recently in the March ’23 budget the scheme has been extended to 2027.
The extension to the scheme poses an opportunity for eligible businesses to participate in the scheme and contribute towards the reduction of global carbon emissions in return for a portion of tax relief.
At a time when every penny counts, joining the CCA scheme is a great opportunity for businesses with energy-intensive processes to gain tax relief.