Skip to main contentWith phase 3 of the Climate Change Agreement Scheme (CCA) less than 12 months away, qualifying companies need to take action to secure their place in the new scheme.
New entrants to the scheme must submit their application between 1st May and 31st August 2025. The new phase is an opportunity to ensure that the CCA scheme works for your organisation.
Many businesses have been in this scheme since it was established, and if they are spending a lot of money on carbon buyouts, it is most likely a result of ineffective target setting.
For new entrants to the scheme, effective target setting is the best way to secure the benefits of a CCA and avoid the financial penalties.
How will Phase 3 Changes affect your CCA performance?
We are expecting numerous small but significant changes to the CCA scheme in Phase 3. These changes will affect how you perform under the scheme, and if your targets aren’t set up in the most appropriate way for your business operations, it could result in further increased carbon buyout costs.
Getting target setting right
As well as considering how the changes to the CCA scheme might affect your business, it is equally important to think about how your production operations have changed or how they might evolve in the future, as this will have a bearing on your target setting.
Under Phase 3 of the CCA scheme, it is expected that, as a minimum, all new targets will be set up allocating fixed and variable energy consumption, rather than total energy use.
For some companies, this approach to target setting will not be sophisticated enough to meet the needs of their production operations. For example, if they are making multiple products with varying energy intensities or are evolving their products in a way that increases their energy intensity.
The best solution in this circumstance can be a NOVEM target. While this is a more complex approach, it can pay dividends by enabling these companies to set targets that are more specific to their operations, potentially leading to more achievable and meaningful reductions.
Questions on target setting?
If you have a query about target setting in Phase 3 of the CCA scheme, the Envantage team is here to help.
We offer businesses a free desktop assessment to ensure they reap the maximum benefits from a CCA, as well as other schemes designed to deliver valuable savings.
Get in touch today to book.
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