A Climate Change Agreement (CCA) is an agreement made between the Environment Agency and an organisation on a voluntary basis, to reduce CO2 emissions over a period of time. By entering a CCA, the Environment Agency will discount the Climate Change Levy (CCL) applied to that organisation. For those organisations with a CCA in place, the CCL is discounted by:
Any organisation that carries out an energy intensive process (deemed so by the Environment Agency) can be eligible for a CCA – whether they are a retailer, an intensive farm or a manufacturer. An organisation is also eligible if a process is controlled by the Environmental Permitting Regulations.
CCAs are used as an incentive to reduce emissions and improve energy efficiency within organisations. The ultimate target is 2020, but progress is checked in 2014, 2016 and 2018 to ensure that targets will be met.
Along with discounts on CCLs for good performance, penalties are also imposed for non-compliance.