Climate change agreement
A climate change agreement (CCA) is a voluntary deal in which a business commits to cut energy use in return for a discount on the climate change levy.
What it is
A climate change agreement (CCA) is a voluntary scheme administered UK-wide by the Environment Agency. Operators agree to reduce energy use or emissions. In return they pay a reduced rate of the climate change levy on the energy covered. Gov.uk says it covers sectors from heavy industry through to supermarkets and farming, and that you first apply through your sector association.
Where you will see it
If you hold one, your supplier should show a reduced CCL rate on your bill for the eligible sites and meters. The supplier needs your CCA details, so tell them as soon as you have a certificate and make sure it is linked to the right meters.
The discount
Under the published CCL rates, the discount is 92% off the main rate for electricity and 89% for gas. For 2026-27 that means you pay 8% of 0.801p on electricity and 11% on gas.
Example
A food manufacturer on an eligible agreement uses 500,000 kWh of electricity.
- Full CCL: 500,000 × £0.00801 = £4,005
- With the 92% discount, it pays 8%: £4,005 × 0.08 = £320.40
- Saving: £3,684.60
Why it matters
For energy-hungry sites it is worth real money, but there are targets to meet and admin to do. Most offices, shops and salons are not eligible, so check our CCA guide and the current scheme rules on gov.uk, since the scheme has been extended and changed over time. The current scheme began in January 2026 and runs to 31 March 2033. New facilities can apply to join an existing sector agreement between 1 January and 31 August each year from 2026 to 2029, if they are eligible.
Related terms
See de minimis and who is exempt from CCL.
Common questions on this topic
Sources
General information only. Energy prices, rules and supplier terms change; check the latest position with your supplier, Ofgem or the Energy Ombudsman before you act.