NUS Consulting Group
Energy Blog / Industry Insights
Posted: Apr. 25th 2023

Climate Change Agreement Scheme Re-Opens for Applications

The Climate Change Agreement (CCA) has re-opened applications from May to September 2023. In this report we'll review the main points of the long-awaited CCA extension proposal.


This year's March Spring Budget included the Government's long-awaited intention to extend the existing Climate Change Agreement (CCA) scheme for a further two years, until 31 March 2027, by including an additional period of reporting, Target Period 6 (TP6).

The publication of a consultation was also announced; 'Climate Change Agreements: consultation on extension and future scheme (2023)', which seeks views on the proposals for possible future schemes and on the details of the extended TP6 scheme. The consultation period ends on 10 May 2023.

Main points of the CCA extension proposal are as follows:

  • The scheme will be extended for a further two years until 31 March 2027.
  • Reporting for TP6 will be for the period 1 January to 31 December 2024.
  • The existing scheme's eligibility criteria will be used as will the base year of 2018 but no new sectors are to be included for TP6.
  • Data for 2023 will not be covered by targets but may be requested for this period.
  • New applications to enter the TP6 CCA scheme can be made between 1 May and 30 September 2023 with CCL discounts available from 1 January 2024.
  • Initial Target proposals for TP6 will consider TP5 improvements and the likelihood of these continuing, with final targets being agreed by Q4 2023.
  • The existing buy out cost of £18 / tCO2e will be increased to £25 / tCO2e and no carry forward of a TP5 surplus will be allowed into TP6.
  • The scheme may require reporting of information on energy efficiency and decarbonisation potential at a Facility.
  • Future schemes may also:
    • Use updated emission and primary electricity factors (replacing the existing 2.6).
    • Allow on-site renewable generation electricity to be reported with a zero-emission factor.
    • Require annual submissions.
    • Require reporting at Facility level (i.e. no target Bubble) using the 'novem' methodology.

Tony Penton

Written by Tony Penton

Energy Costs and Compliance Consultant