Friday 17 April 2020

UK firms to save up to £300m a year as Climate Change Agreement scheme extended

The launch of a government consultation on the terms of an extension to the Climate Change Agreement scheme (CCA) means businesses across the UK are set to save up to £300 million a year.

The CCA works by setting targets for reducing businesses’ energy use in return for discounts on the climate change levy, received through savings on energy bills - the consultation announced today will enable new targets to be put in place from January 2021, allowing the extension of the scheme to March 2025, beyond its current end date of March 2023.

The move is expected to give eligible companies extra financial support and security - it will also allow new businesses to apply to join and gain access to savings as of January 2021, as businesses have not been able to join the scheme since October 2018 due to the current rules.

Energy Minister Kwasi Kwarteng said: “Extending the Climate Change Agreement scheme will give businesses greater clarity and security at a time when they need it most.

“This extension will save businesses money while cutting emissions - a key element of our work to combat climate change in the months and years ahead.”

Since the CCA was introduced seven years ago, it is estimated to have helped companies save enough energy to power 140,000 homes.