Climate Change Agreements (CCA) scheme
Inspired offers comprehensive support for claiming your CCL discount.
Claim your Climate Change Levy discount and let Inspired look after your ongoing obligations
The Climate Change Agreements (CCA) scheme allows agreement holders to claim a discount on the Climate Change Levy (CCL) – a tax on energy use in industry, commerce and the public sector.
In return for their discount, scheme participants must meet decarbonisation and energy efficiency improvement targets which are agreed between government and sector associations.
Available for a vast array of sectors, a CCA can create considerable gas and electricity cost savings for your organisation.
What do I need to know about claiming my CCL discount?
Although the CCA scheme is a vital opportunity to reduce energy costs and recover resources to reinvest into your organisation, participating requires sustained and consistent effort throughout.
For example, determining whether your organisation is eligible for a Climate Change Levy discount requires careful examination of your operations; each CCA application is a unique, comprehensive and complex technical exercise.
The process does not end at a successful application either; the reporting and data requirements to continue claiming your discount are becoming increasingly complex and frequent.
For example, the Environment Agency (EA) – the CCA scheme administrator – is carrying out randomised audits to ensure companies have a full evidence record and accurate energy consumption and production data calculations for the qualifying processes as part of their CCA application. If this happens, we will provide the response to the EA on your behalf.
Failure to maintain an accurate record and respond to data requirements could result in penalties. You could also risk over- or underclaiming what you are entitled to.
How can Inspired help?
Inspired offers comprehensive support for claiming your CCL discount – our fully managed levy exemption service includes:
- Eligibility assessment: We will determine which levies your organisation could apply for and recommend next steps.
- Technical assessment: We will assess your organisation’s processes to ascertain the maximum discounts and all exemptions attainable.
- Application: We’ll complete your application(s); reclaim any historical savings you are entitled to as well as secure maximum ongoing savings.
- Ongoing obligations: We will take care of your ongoing commitments, including review, administration, reporting and validation – reducing your administrative burden.
Participating in the CCA scheme helps you access previously unavailable financial resources – meaning you can now further invest on energy efficiency and advancing on your net zero journey.
Related services
Beyond ongoing compliance, Inspired can help you reach the decarbonisation targets that participating in the CCA scheme now requires you to meet.
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Why stop at Climate Change Levy?
Other opportunities we can help you pursue include:
Talk to an expert
Duncan Banks
Director: Compliance
“The process of claiming CCL discounts is evolving, and an expert partner can help your organisation navigate this increasingly complex compliance landscape.
“Inspired can help ensure you are making the most of the levies and exemptions available, from a successful application to ongoing compliance. Our support does not need to end there either – our suite of other services can help you meet and exceed your CCA targets.”
FAQs
The Climate Change Levy is an environmental tax on energy usage in industry and commerce.
Climate Change Levy rates vary for electricity and gas, and this cost is reflected in the non-commodity element of your energy bill.
Yes – the new CCA scheme commenced on 1 January 2026, so even businesses with an existing Climate Change Agreement must apply for the CCA scheme afresh to continue claiming their CCL discount. Previous participation doesn’t carry over automatically.
The final certification period of the current CCA scheme has been extended to 30 June 2027, giving businesses more time to meet their existing targets.
Some energy users are exempt from the Climate Change Levy (CCL) – including charities and non-profits, and small business consumers. Meanwhile, other qualifying energy consumers can apply for a substantial reduction of this tax.
The new CCA scheme commenced on 1 January 2026. Whether you have participated in the past or have only heard of the opportunity, you must apply to the new scheme to claim your CCL discount.
For businesses in existing eligible sectors, the application window for the new CCA scheme runs annually from 1 January to 31 August, so the next opportunity to apply for the CCA scheme is 1 January to 31 August 2027. New sectors or processes can enter the scheme from 1 January 2027 at the earliest.
Target Periods are the compliance windows within the new CCA scheme during which businesses must meet agreed energy efficiency and decarbonisation targets to keep their climate change levy exemption. There are three: TP1 (2026), TP2 (2027–2028), and TP3 (2029–2030).
Yes – besides the CCA scheme, businesses can also look at Mineralogical & Metallurgical (MinMet) scheme, a separate climate change levy exemption for qualifying processes, alongside other exemptions like Energy Intensive Industries (EII), British Industrial Competitiveness Scheme (BICS) and UK Emissions Trading Scheme (ETS) compensation. Eligibility depends on your sector and energy use rather than your contract type, so partnering with someone who understands each scheme’s nuances and how these integrate with your wider energy usage is essential.
From our insights
British Industrial Competitiveness Scheme: What do you need to know
Schemes like BICS are a critical opportunity to reduce your energy costs but this support comes with considerations.
Have you heard of a Forensic Energy Cost Audit?
This service analyses the non-commodity rates applied to your billing at forensic level whilst additionally checking your eligibility for exemptions from costs such as the Climate Change Levy.
Window of opportunity: Is your business eligible for Levy Exemptions?
Levy exemption eligibility has nothing to do with your energy contract type or emissions reduction method – you may even qualify for more than one type of exemption.Get in touch
Let’s turn your CCA targets into reality. Talk to our experts.