Climate Change Agreements (CCA’s) extended to 2027

Climate Change Agreements (CCAs) are voluntary agreements entered into by UK industry with the Environment Agency to reduce energy use and carbon dioxide emissions. In return for meeting energy reduction targets, participants receive a discount on the Climate Change Levy (CCL), a tax added to electricity, gas, and fuel bills.

The current scheme was due to expire in 2025, this has now been extended for a further two years to 2027.

Does my business qualify for the savings?

If you are unsure whether your business is eligible to participate in a CCA please do to contact for a free remote consultation.

Below summarises annual reductions on invoices for businesses who are eligible for the scheme based on varying annual consumption levels. With the extreme volatility seen in UK energy prices over the last two years and the impact on business cashflow and performance, additional relief will be welcomed by businesses who qualify for the scheme.


With the announcement of the extension to the scheme, an application window is now likely to re-open in May until September 2023. If your organisation is eligible, do be pro-active to understand whether your business is qualifies.

What if my business is already in a CCA scheme?

You now have confirmation your business will be eligible for the discount subject to meeting energy performance criteria for at least a further two years.  There is a consultation period due to conclude in May 2023 with the final draft of the CCA extension proposals unlikely to be confirmed until later in the summer. It is expected eligibility for the scheme will remain the same.

Other important details to note include…

  • A new target period (TP6) will be introduced covering January to December 2024.
  • No surplus CO2 is to be carried forward from TP5 to TP6.
  • The base year for TP6 will remain as 2018.
  • The buyout price will increase from £18/tCO2e to £25/tCO2e.

Get in touch with our CCA delivery team..

For a free remote CCA assessment with our expert energy engineers who will determine whether your business is eligible for the CCA scheme please e-mail