Climate Change Agreements Scheme: templates for Umbrella and Underlying agreements
Summary
DESNZ has published updated template agreements for the Climate Change Agreements scheme, covering the new phase with target periods from 1 January 2026 to 31 December 2030. CCAs allow energy-intensive industrial operators to receive a discount on the Climate Change Levy in exchange for meeting energy efficiency or carbon reduction targets. The templates set out the contractual framework between the Environment Agency, sector associations, and individual facility operators.
Why it matters
CCAs are an exemption regime: operators invest in compliance bureaucracy to avoid a levy that functions as a tax on energy use. The scheme benefits incumbents who can absorb administrative costs over new entrants who cannot.
Key facts
- •New CCA phase covers target periods 1 January 2026 to 31 December 2030
- •Templates supersede all previous versions
- •Environment Agency administers the scheme
- •Two-tier structure: umbrella agreements (sector associations) and underlying agreements (individual operators)
Timeline
Areas affected
Related programmes
Memo
The revised Umbrella and Underlying templates supersede previous templates. They incorporate the amendments in relation to the new phase of the Climate Change Agreements ( CCAs ) scheme that has target periods running from 1 January 2026 to 31 December 2030. An umbrella agreement is made between the Environment Agency, as scheme administrator, and a sector association. It sets out the sector-level framework, including commitments, targets, and rules for participation in the scheme. An underlying agreement is made between the Environment Agency and an operator. It applies the scheme to individual facilities and sets out the targets and obligations for each participant. The revised templates should be read in conjunction with the Climate Change Agreements Scheme technical annex .