What is a Climate Change Agreement?

The Climate Change Agreement (CCA) is a voluntary initiative established by the UK government to promote energy efficiency and decrease CO2 emissions within energy-intensive industries. Its aim is to encourage the adoption of sustainable practices by cutting down energy use across various sectors, including plastics and chemicals. By setting energy reduction targets for businesses, the CCA not only contributes to lowering global carbon emissions but also helps participants save money with substantial discounts on energy bills through the Climate Change Levy.

On the 16 October 2024 the Department for Energy Security and Net Zero (DESNZ) confirmed a new CCA scheme for a further 6 years, offering eligible businesses the opportunity to contribute to environmental sustainability while also benefitting from a tax relief with reduced Climate Change Levy (CCL) rates until March 2033. The start date of the first Target Period of the new scheme will be 1 January 2026. 

New entrants may apply during May to August 2025 for entry into the new scheme on 1 January 2026.

 

What is Climate Change Levy?

Climate Change Levy (CCL) is an environmental tax charged on the energy consumed by a business, to encourage non-domestic energy consumers to be more energy efficient. The greater your business's energy efficiency and the lower your use of carbon-emitting energy, the less CCL you will be required to pay. No matter who your energy supplier is, CCL is paid by all businesses in the industrial, commercial, agricultural and public services sectors and should be shown as a seperate line item on your energy bill.  

Businesses who enter into a Climate Change Agreement are entitled to a reduced CCL charge on their energy bills. 

 

What are the benefits of joining the Climate Change Agreement?

• Receive up to a 92% discount on the Climate Change Levy charge reflected on your energy bill
• The initiative offers the opportunity to increase your commitment to net zero and corporate social responsibility (CSR)
• Benefits from energy management far outweigh those of simply increasing sales
• Our team of experts are always on hand to guide and support you through the process
• BPF members receive a discount on CCA fees

Why choose BPF Energy?

Our experienced team has successfully guided over 300 organisations in the plastics sector through the program, resulting in significant cost savings of up to seven figures annually for some plastics manufacturing companies. With over a decade of expertise in enhancing sustainability performance and credentials for plastics processors, BPF Energy are dedicated to assisting you through the application process and offer comprehensive guidance on all aspects of the CCA. 

 

Are there different CCA schemes within the plastics sector?

BPF Energy manage two distinct sectors, Packaging & Industrial Films (PIFA) and Plastics (BPF). The PIFA CCA scheme is eligible for businesses who specialise in producing plastic film. The BPF CCA scheme is eligible for companies who own a site that produce plastic materials or products. Learn more about the eligibility criteria of each scheme HERE or get in touch and ask our experts.

 

Packaging CCA (PIFA) – For producers of plastic film using extrusion to convert melted polymer into blown   or cast film.	Plastics CCA (BPF Energy) – For processors of finished or semi-finished products by the application of heat and pressure or by chemical reaction.

 

How do I apply for the CCA?

New entrant applications may be submitted during May to August 2025 for entry into the new scheme on 1 January 2026. 

If you are interested in joining the CCA scheme please register your interest by emailing [email protected] with a brief description of the process(es) at site and an indication of your annual energy consumption, or fill out the form below.

 

 

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