Consultation outcome

Climate Change Agreements scheme extension and reforms for any future scheme

• From: Department for Business, Energy & Industrial Strategy and HM Treasury
• Published: 16 April 2020
• Last updated: 31 July 2020 — See all updates

This was published under the 2019 to 2022 Johnson Conservative government

This consultation has concluded

Read the full outcome

CCAs: proposal for scheme extension and views on reforms for any future scheme - government response

PDF, 299 KB, 34 pages

Detail of outcome

We will implement the changes listed in the government response to the Climate Change Agreements (CCA) scheme extension, including laying the necessary legislation. BEIS and the Environment Agency (EA) will provide more detail regarding target setting negotiations and new/varied agreements.

We will undertake further assessment of the purpose and targeting of a long-term scheme following the extension. The government will confirm a timeline for further engagement on the future of the CCA scheme shortly.

The government response includes a high-level summary of the responses by question, followed the government response in each case. We have included a summary of the responses to the call for evidence on future scheme reform, but no decisions have yet been made on any future CCA scheme.

Detail of feedback received

We received 101 responses to the consultation, from the following groups:

• 43 - sector/trade associations (37 of which are Climate Change Agreement holders)
• 36 - businesses
• 16 - consultants
• 3 - individuals
• 2 - energy suppliers
• 1 - academic

Nearly all respondents welcomed the extension and certainty on the Climate Change Levy (CCL) discount, worth nearly £300 million annually to businesses. Many felt that the proposals were appropriate for extension as these followed similar patterns of previous periods. There was broad support for maintaining existing rules and eligibility criteria as this provided consistency for operators during a time of economic uncertainty.

While responses to the proposals were generally positive, many raised concerns about the tight timelines as well as specific aspects, such as an increase to the buy-out price and inability to use surplus in the added Target Period.

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Original consultation

Summary

We're seeking views on a proposed extension to the climate change agreements (CCA) scheme, and on potential reforms were there to be a future CCA scheme.

This consultation ran from
3:30pm on 16 April 2020 to 11:45pm on 11 June 2020

Consultation description

We’d like your views on proposals to:

• extend the current climate change agreements (CCA) scheme by 2 years, through:
  • the addition of a new Target Period, from 1 January 2021 to 31 December 2022
  • extending certification for reduced rates of CCL for participants meeting obligations under the scheme to 31 March 2025
• re-open the scheme, allowing eligible facilities not currently participating to apply to join

In addition we’re seeking your initial views on potential reforms were there to be a future CCA scheme.

The consultation is open to anyone, but in particular we’d like views from:

• sector associations and business which participate in the scheme
• operators of facilities not currently in the scheme that may be eligible
• organisations such as trade associations, NGOs, consultants and academia and other bodies who have an interest in the scheme

The CCA scheme operates on a UK-wide basis.

Please do not send responses by post to the department during the coronavirus lockdown period as we will not be able to access them.

Documents

Climate Change Agreements: proposal for scheme extension and views on reforms for any future scheme

PDF, 247 KB, 22 pages

Published 16 April 2020
Last updated 31 July 2020 + show all updates

1. 31 July 2020

   Government response published.

2. 16 April 2020

   First published.