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What is a Climate Change Agreement (CCA)
What is a Climate Change Agreement (CCA)? A simple guide to energy tax relief
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Welcome and Introductions Presenters Peter Haslop Yolanda Starkie
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What is a Climate Change Agreement?
A Climate Change Agreement (CCA) is a voluntary scheme set up by the UK government to encourage investment in energy efficiency within energy intensive industries A voluntary UK government scheme Performance Targets to increase energy efficiency and reduce carbon dioxide (CO2) emissions Climate Change Levy exemption
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Why is now the time to get smart with Climate Change Levy?
The 2016 budget announced the closure of the Carbon Reduction Commitment scheme (CRC) whilst also announcing an increase in CCL rates to recoup lost revenue from this abolition. CCL rates are increasing in April 2019 CCL exemption for CCA participants increases April 2019 The CCA scheme closes to new entrants 2018
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Climate Change Levy rates (CCL) a tax applied to non-domestic fuels
April 2016 to March 2017 April 2017 to March 2018 April 2018 to March 2019 April 2019 to March 2020 Electricity 0.559p/kWh 0.568p/kWh 0.583p/kWh 0.847p/kWh Natural Gas 0.195p/kWh 0.198p/kWh 0.203p/kWh 0.339p/kWh LPG 1.251p/kg 1.272p/kg 1.304p/kg 2.175p/kg Coal + other 1.526p/kg 1.551p/kg 1.591p/kg 2.653p/kg
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Climate Change Levy relief (CCL) reduced rates
Fuel April 2016 to March 2017 April 2017 to March 2018 April 2018 to March 2019 April 2019 to March 2020 Electricity 10% 7% Natural Gas 35% 22% LPG Coal + other
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Is a CCA viable for your Company?
If your energy invoices have line items marked CCL (Climate Change Levy) and the combined charges are greater than £500 before any discount the answer is YES!
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Are you eligible for a CCA?
For producers of plastic film using extrusion to convert melted polymer into blown or cast film For Polymer processors of finished or semi-finished products by the application of heat and pressure or by chemical reaction
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The Application Process
Step 1 - Register your interest via a BPF1 form - Do you meet the eligible definition? Energy & Production Step 2 - Submit your application - Facility eligibility form and supporting documents - CCA Team QA Step 3 – Environment Agency - Application review to approval (8-13 weeks) Step 4 – Apply for Climate Change Levy exemption - up to 90% on electricity, 65% on gas and other fuels
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How to Measure Your Performance?
Specific Energy Consumption (SEC) Primary Energy / Good production - kWh/kg or for PIFA agreements kWh/m2 Primary Energy Electricity (x2.6) Gas (x1) Relative and NOVEM Targets
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The Application Facility eligibility form (FEF)
CCA Partnership application Manufacturing Process description Eligible process description & DAA Factory floor plan indication eligible process Process flow diagram 70/30 assessment Base year (2008), 2015 & 2016 energy and production data
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Will a CCA cost me anything?
If the target is not met, an operator can remain a participant of the scheme, through a CO2e buy-out mechanism. This is set at £14/tonne of CO2e for Target Period 3 & 4 CCA Administration fees are linked to the CCL relief available to a site. We can advise on this on the return of BPF1 form
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Administration BEIS CCA Partners Sector CCA Administrator
Department for Business, Energy & Industrial Strategy BEIS CCA Scheme Auditors CCA Scheme Administrators Sector CCA Administrator Your Energy Supplier CCA Partners
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CCL rate change Site Electricity 2017/2018 2019/2020 1,000,000 kWh £5,112 £7,877 2,000,000 kWh £10,224 £15,754 3,000,000 kWh £15,336 £23,631 4,000,000 kWh £20,448 £31,508 5,000,000 kWh £25,560 £39,386 The table displays the potential CCL relief available to eligible sites through participation in CCA and how this is set to rise by April 2019
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BPF CCA Team Please visit our webpages www.bpf.co.uk/cca
Gov.uk website For general enquires please contact as at Any questions?
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