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Climate Change Agreement Scheme Extension until 2027

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The Climate Change Agreement (CCA) Scheme has been extended until March 2027. This is good news for everyone who currently benefits from the initiative, but also offers an opportunity for new sites that meet the eligibility criteria to join the scheme.

But organisations need to act quickly as the window for new entrants is only open until 30th September 2023.

The current scheme was expected to be replaced with an entirely new phase starting in 2024, but the government has now decided to postpone this and to extend the current CCA phase. A future phase of CCAs will be consulted on in due course.

In this article, we summarise everything you need to know about the forthcoming changes.

Key points on the CCA extension:

  • The current CCA scheme has been extended until March 2027
  • The eligibility criteria, sectors, and rules will remain the same
  • The scheme will be open to new entrants for a short time, closing to applications on 30th September 2023
  • Financial penalties for non-compliance and incorrect reporting will increase
  • There will be an increased reporting requirement at TP6 to disclose implemented and potential energy and carbon reduction activities at CCA sites

There are also key details to note around targets:

  • A new target period (TP6) will be introduced covering January to December 2024.  January to December 2023 will remain uncovered by a target as anticipated
  • Targets are expected to be confirmed in November 2023
  • The base year for TP6 will remain at 2018
  • Buyout costs for failing targets units will increase from £18 to £25 / tonne

What does this mean for current CCA holders?

  • Greater clarity on potential savings because future CCL savings are now secured under the current CCA scheme until at least 2027, subject to your organisation meeting targets / paying carbon buyout costs
  • The need to plan ahead in readiness for 2024 targets. With increased carbon charges for failing sites and reporting requirements, now is the time to take action
  • Increased CCA coverage if you have any qualifying sites not under a CCA, then you have a short window to apply. Get in touch with the Envantage team today 

While this wasn’t the announcement on CCAs that many were expecting, Jessica Harris, senior carbon and energy consultant at Envantage, believes it brings a number of positive opportunities for organisations, commenting:

“Not only does this provide the necessary clarity on potential savings, it also offers the opportunity for increased CCA coverage through the new application window.

We would urge anyone with a CCA to get in touch with our expert team today to ensure they are maximising the savings benefits that this scheme can deliver for their organisation.”

You can find more details on the scheme through the government website: Climate change agreements – GOV.UK (www.gov.uk)

Lastly, we urge anyone to contact us if you have any sites needing a CCA, or if you need help with energy and carbon reduction planning or have any general queries.

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