The Government has confirmed that the Climate Change Agreement, initially set to end in March 2023, will be extended for a further two years.
The Climate Change Agreement (CCA) was established by the Government to provide tax breaks to businesses that actively reduce their energy consumption. Since its set up in 2014, the response to the scheme has proved effective in encouraging UK companies to reduce their uses of energy.
Under the existing scheme, businesses are given targets for energy saving and receive a discount on the Climate Change Levy (CCL) in their energy bill once they’re met.
This positive response has encouraged the Department for Business, Energy, and Industrial Strategy (BEIS) to extend the CCA scheme for a further two years, until March 2025. The extension will mean that the CCA scheme will deliver a further £300m of cost savings to qualifying companies while reducing carbon emissions by 700,000 tonnes per year.
Before the extension, new businesses were unable to apply for the scheme, as the deadline for applications closed in October 2018. However, following recent developments, the deadline for new applicants has been extended to 30 November 2020.
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