The Climate Change Agreements, Regulations 2020

This statutory instrument came into force on 1st October 2020.  It made amendments to the  Climate Change Agreements (Administration) Regulations 2012 (S.I. 2012/1976) and the Climate Change Agreements (Eligible Facilities) Regulations 2012 (S.I. 2012/2999).  It provides a two year extension to the Climate Change Agreements Scheme, with the new target period extending the reduction rate for the Climate Change Levy to 31 March 2025.

The Climate Change Levy was introduced on 1st April 2001 and is a tax on fuels including natural gas, electricity, solid fuels and liquid petroleum when it is used by businesses and the public sector.

The Finance Act 2000 state that a Climate Change Levy can be charged on some suppliers of energy, but a reduced rate may be charged if a place receiving the supplies of energy is covered by a climate Change Agreement (CCA) certificate.

An organisation can only receive certification if it can show it has progressed far enough  towards meeting the CCA energy use or emissions targets.

The CCA is a voluntary scheme with participants having entered into agreements to reduce energy use and emissions with the Government, in exchange for a reduction in the CCL.

For further help with how this amendment might affect your organisation, or assistance with managing your environmental impacts including energy use, contact us.

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Source: ARM
The Climate Change Agreements, Regulations 2020