CLIMATE CHANGE AGREEMENTS (CCA)

The levy is designed to play a major role in helping the UK meet its targets for reducing greenhouse gas emissions. The Government, in implementing the Levy has allowed special consideration to be given to energy intensive industries, this is due to the amount of energy they use, the requirements placed on them by the Pollution Prevention and Control (PPC) regime and their exposure to international competition. An 80% discount from the Levy has been given for all those sectors who agree to engage in challenging targets for improving energy efficiency or reducing carbon emissions.

From January 2005 the criteria was extended to include other energy intensive sectors not previously covered. As part of this process, the various trade associations represented different industries to agree independent emission targets that their members would contract into.

The qualifying criteria to enter into Climate Change Agreements, (CCA’s), are set out in the Energy Products Directive which came into force on 1 January 2004. Qualifying processes must :

• Meet or exceed a 10% threshold of energy intensity
• Fall between a 3% and 10% threshold of energy intensity, provided they met or exceed and import and export penetration ratio of 50%

In both cases, energy intensity is defined as being at least 3% of production value.

PROjEN can assist you with every stage of entering into a Climate Change Agreement, from determining whether your organisation qualifies for entry, to carrying out cost benefit analysis to determine whether increased resources to support this activity justifies any savings made, (including the ability to complete all necessary documentation). PROjEN can also provide ongoing support to identify and implement energy saving projects.