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Climate Change Agreement scheme has been extended for plastics processors

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The Climate Change Agreement (CCA) scheme has been extended by two years and eligible plastics processors can now apply for entry by contacting BPF Energy, which runs the scheme on behalf of the plastics industry.

Companies with a CCA benefit from exemptions on their Climate Change Levy (CCL) of up to 92% for electricity and 81% for natural gas.  

A CCA is a voluntary agreement that includes targets to increase energy efficiency and reduce CO2 emissions.

It is a scheme provided by the UK government that is intended to help tackle climate change while also supporting businesses.

Across the packaging and plastics sector, average savings per year equate to £56,000 for electricity and £7,500 for gas and participants can benefit by improving productivity and energy efficiency, while also reducing their energy costs.

All new entrants will be working to a new revised 2018 base year and an estimated 6% reduction target during the two-year target period, which runs from 2021 to 2022, with guaranteed CCL relief until 31 March 2025.

This reduction figure is an estimate from BPF Energy and the exact figure will be confirmed after a government consultation, which is due to close in June 2020.

BPF Energy also advises that for applications to be financially viable, a company’s electricity spend should ideally be greater than £2000 per month at 10p per kWh.

Peter Haslop, BPF Energy Technical Director, said: We welcome the two-year extension of the Climate Change Agreement (CCA) scheme. As an organisation that has managed the CCA for the plastics industry for many years, we know this scheme is highly valued, has helped to significantly reduce energy use and has saved companies money too. We encourage all eligible companies to get in touch with BPF Energy to find out how a CCA could benefit them.

The closing date for new applications is 30 September 2020.

BPF Energy is also hosting a webinar explaining the scheme at 11am on 15 May. You can register for this via the British Plastics Federation’s website.

For more information visit: www.bpf.co.uk/bpf-energy/home

To sign up to the webinar visit: https://www.bpf.co.uk/events/webinars/lunch-and-learn.aspx

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