Delayed: Climate Change Agreement applications for new entrants from existing sectors – What do I need to know? 

The October 2024 Government Response to the new Climate Change Agreement scheme consultation indicated that new entrants from existing sectors would be able to apply to join the scheme between 1 May and 31 August 2025. 

However, the opening of this entrant window has now been delayed. 

What is the Climate Change Agreement (CCA) scheme?

This voluntary scheme allows holders of climate change agreements to claim a discount on the Climate Change Levy (CCL) – a tax on energy use in industry, commerce and the public sector. In turn, participants must meet energy efficiency improvement targets which have been agreed between government and sector associations. 

A participating organisation must measure and report its energy use and carbon emissions against agreed targets over two-year target periods. 

The CCA scheme is administered by the Environment Agency on behalf of the Department for Energy Security and Net Zero (DESNZ) for the whole of the UK. 

What is the latest?

The Environment Agency has stated, on behalf of DESNZ, that applications from new entrants from existing sectors will not be accepted from 1 May as initially communicated.  

This is to further develop and test a new IT system to ensure that applications can be registered and processed efficiently. A revised application window is set to be announced in due course. 

How can Inspired help?

The new CCA scheme places all organisations on the same starting line when the applications eventually open. This means considerable interest towards the scheme, and need for a strong application.  

Whether you were already planning to apply, or have only just heard of the opportunity, Inspired’s CCA service can help you navigate the scheme to ensure you can claim your CCL discount.  

And why not go beyond while at it? Other opportunities include: 

• Mineralogical & Metallurgical (MinMet), where taxable commodities used in mineralogical or metallurgical processes are exempt from the main rates of climate change levy.
• Energy Intensive Industries (EII) Exemption, which seeks to reduce qualifying business activity non-commodity energy costs.  

Non-commodity costs can account for as much as 60% of business energy bills, and their role in your energy bill continues to grow as the market stabilises. However, the impact of non-commodity charges depends on your portfolio. 

Although the dates for the revised CCA application window are yet to be announced, this interlude marks an opportunity to take a thorough look at how non-commodity costs impact your portfolio. 

Our Forensic Energy Cost Audit will scrutinise all your non-commodity costs – not just levy exemptions. Our experts will analyse your present and past energy non-commodity costs for past errors of up to six years prior, and you could also benefit from ongoing savings. This service operates on a share of savings basis, so if we find nothing – there is no fee. 

So why not expand your CCA exercise into a full-on Forensic Audit while there is now time?