🌍 Important Updates to the UK’s Climate Change Agreements (CCA) Scheme

The UK’s Climate Change Agreements (CCA) scheme is evolving, with a new six-year scheme launching on 1 January 2026. This refreshed framework will reward participants who improve their energy efficiency with continued Climate Change Levy (CCL) relief through to March 2033.

✅ New scheme timeline

• Duration: 2026–2030, with CCL discounts extending to March 2033
• Applications open: 1 May – 31 August 2025
• No targets assessed in 2025 (a “fallow year”)
• Existing participants must actively re-apply—no automatic transfers

✅ What’s changing?

• Eligibility check: All current participants must reconfirm their eligibility
• Updated performance baseline: Now based on 2022 data, reflecting post-COVID and Brexit conditions
• Revised data requirements: Participants will declare Fixed and Variable Energy consumption proportions
• Removal of “bubbles”: Grouping multiple sites under one target will no longer be permitted

✅ New entrants welcome

• New sites not currently under a CCA can apply via their sector association during the application window.

✅ Oversight & guidance

• The Environment Agency will audit a proportion of participants to ensure compliance.
• A new Operations Manual will be published before the scheme starts to support participants.
• Government consultation on the design was completed, with a response issued in November 2024.

🔔 What this means for businesses:
This is a crucial opportunity for energy-intensive industries to secure financial benefits while driving decarbonisation. But organisations must prepare now—especially existing participants who must reconfirm eligibility and submit updated data.

💡 At GLEG, we’re ready to help businesses navigate the transition to the new scheme.

📩 Contact us at hello@gleg.co.uk to find out how we can assist your business in taking advantage of the CCA scheme.