The Climate Change Agreements (Eligible Facilities) Regulations 2012 replaces and consolidates several existing regulations related to Climate Change Agreements (CCAs). It implements changes to Climate Change Agreements (CCAs), including transitioning from a 90% rule to a 70% rule for determining the scope of facilities covered by CCAs and eliminating the energy intensity criteria.
CCAs are voluntary arrangements that offer specified energy-intensive businesses the chance to receive a discount on the Climate Change Levy (CCL) they pay if they achieve energy efficiency or emission reduction targets. Participating businesses can potentially benefit from reduced CCL tax bills if they meet the requirements of these agreements. As CCAs specifically target energy-intensive businesses in the private sector, their implementation has no impact on the public sector.
By disapplying operating thresholds within Environmental Permitting Regulations (EPR) for CCAs, smaller businesses are also able to participate in the scheme. This allows them to benefit from the CCL discount without facing a competitive disadvantage against larger businesses. Participation is voluntary for small businesses, meaning they can choose whether or not to take advantage of the benefits it offers.
