Climate Change Agreements: consultation on a new scheme
Read the full outcome
Detail of outcome
This consultation was published alongside an announcement of a new 6-year phase of the Climate Change Agreement (CCA) Scheme at Autumn Statement 2023. This followed previous announcements of short-term extensions and legislation to extend the current scheme.
The 2023 consultation, which ran between 22 November 2023 and 14 February 2024, sought views on policy proposals for a new 6-year CCA scheme, including changes to eligibility requirements, reporting requirements and target setting processes.
The government response re-affirms a new 6-year CCA scheme. The new scheme will have targets to the end of 2030 (with the first target period starting for existing CCA sectors on 1 January 2026) and provide CCL reduced rates for those meeting their obligations until March 2033.
This document includes a high-level summary of the feedback by question, followed by the government’s response to each.
Detail of feedback received
We received 62 responses to the consultation from the following groups:
- 41 were from sector/trade associations
- 17 were from businesses
- 3 were from consultants
- 1 were from academics
There was broad support for the new 6-year scheme including maintaining the current financial penalty, allowing surplus energy savings to be carried forward between target periods, and updating the primary electricity factor before each target period.
The majority of respondents welcomed the proposal of gathering data at facility level data, and for the data gathering exercise to be conducted prior to any target setting process.
There were concerns about potential increased administrative costs and on the deliverability of the timelines.
Original consultation
Consultation description
This consultation seeks views on proposals for a new 6-year Climate Change Agreements scheme to begin in 2025.
The new scheme would add 3 new target periods running from 2025 to 2030, resulting in 3 certification periods running to 31 March 2033. It will provide further reductions in the Climate Change Levy for eligible participants.
The scheme would be open to new entrants who qualify under the current eligibility criteria.
The consultation outlines:
- aspects of the current scheme that will be retained for the new scheme, as well as some policy decisions following on from proposals in our last consultation
- further proposals for a future scheme, including the possibility for new sectors to apply to be eligible for the scheme, target setting, reporting and how performance will be measured
We are seeking views from:
- sector associations and business which participate in the scheme
- operators of facilities not currently in the scheme that may be eligible
- trade associations
- non-governmental organisations (NGOs)
- consultants
- energy suppliers
- academia
- any others with an interest in the scheme
Documents
Updates to this page
Published 22 November 2023Last updated 16 October 2024 + show all updates
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The government response to this consultation has been published.
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First published.