Page type: primary-anchored (mirrors Climate Change Agreements (Administration) Regulations 2012)
Climate Change Agreements (Administration) Regulations 2012
Source: si-2012-1976-cca-administration.md Last updated: 2026-04-05
What this instrument does
The Climate Change Agreements (Administration) Regulations 2012 (SI 2012/1976) appoint the Environment Agency as administrator of Climate Change Agreements under the Climate Change Levy framework (Finance Act 2000, Schedule 6). CCAs give energy-intensive facilities a reduced CCL rate (90% for electricity, 65% for gas) in exchange for meeting energy efficiency or emissions reduction targets.
How CCAs work
Two-tier agreements. Umbrella agreements between sector associations and the EA set sector-level commitments. Underlying agreements between individual operators and the EA set facility-level targets derived from the sector commitment.
Compliance cycle. The operator monitors energy use and emissions during the target period, then reports to the EA by 1 May after the period ends (Reg.14). If the target is met, the reduced CCL rate continues for the next certification period. If missed, the operator pays a buy-out fee per tCO2 equivalent (Reg.12) or loses the discount.
Surplus banking. Overachievement in one target period may be carried to the next, except in the final year of a phase (2025 or 2030) (Reg.13).
Target periods
| Period | Years |
|---|---|
| 1-5 | 2013-2022 (two-year periods) |
| 6 | 2024 |
| 7 | 2026 |
| 8 | 2027-2028 |
| 9 | 2029-2030 |
Periods 7-9 were added by SI 2025/813, effective 1 January 2026.
The Register and accounts (Regs.4-8)
The Secretary of State operates an electronic register for CCA administration (Reg.4). The EA establishes accounts for operators and sector associations (Reg.5), maintains register security (Reg.6), and closes accounts after agreement termination (Reg.8).
Financial penalties (Reg.15)
The EA may impose penalties for failure to provide information, provision of inaccurate information, or missed notifications. Maximum penalty is the greater of £500 or a specified levy-based formula.
Interaction with UK ETS
Operators participating in both CCA and UK ETS must report their ETS status (Reg.14). The two schemes address different aspects: ETS caps total emissions with tradeable allowances; CCAs target energy efficiency improvements with tax discounts.
Defined terms
See the source file defined terms register for 18 defined terms including "operator", "sector association", "umbrella agreement", "underlying agreement", "surplus", and "tCO2 equivalent".
Cross-references
- Legal basis: Finance Act 2000, Schedule 6
- Tax framework: Climate Change Levy (Climate Change Agreements topic)
- UK ETS interaction: UK ETS (SI 2020/1265)
- Extension: SI 2025/813 (target periods 7-9)
- Related instruments: ESOS, SECR (other energy/carbon obligations for large users)
Character positions
No character positions recorded for this instrument.