The Climate Change Agreements (Administration and Eligible Facilities) (Amendment) Regulations 2020 is a new piece of legislation aimed at reducing greenhouse gas emissions from energy-intensive industries. It was introduced by the UK government on 1 October 2020 and came into effect on 1 January 2021. This legislation replaces the previous Climate Change Levy (CCL) discount scheme and introduces a new climate change agreement (CCA) scheme.

The CCA scheme is a voluntary scheme that allows businesses in energy-intensive sectors to receive a discount on their energy bills in exchange for reducing their greenhouse gas emissions. The new regulations expand the eligibility criteria for the scheme to include new sectors, such as food and drink manufacturing, data centers, and research and development facilities. The regulations also introduce stricter emissions reduction targets for existing participants in the CCA scheme.

Under the new regulations, businesses will have to demonstrate that they have made energy efficiency improvements and implemented low-carbon technologies to be eligible for the CCA scheme. They will also have to commit to reducing their emissions by a certain percentage by the end of the agreement period.

The CCA scheme is an important tool in the UK’s efforts to reduce greenhouse gas emissions and meet its climate change commitments under the Paris Agreement. The scheme has been successful in reducing emissions from energy-intensive sectors by incentivizing businesses to invest in energy efficiency and low-carbon technologies.

The new regulations build on the success of the CCA scheme by expanding its coverage and increasing the ambition of emission reduction targets. The regulations also introduce a new reporting requirement for businesses to provide more transparent information on their energy use and emissions.

In conclusion, the Climate Change Agreements (Administration and Eligible Facilities) (Amendment) Regulations 2020 is a significant piece of legislation that demonstrates the UK government’s commitment to reducing greenhouse gas emissions from energy-intensive sectors. The CCA scheme is a valuable tool in achieving this goal, and the new regulations will make it even more effective in incentivizing businesses to reduce their emissions and invest in low-carbon technologies.