A new report on a reward scheme for energy efficiency shows how businesses from multiple industries are cutting their energy consumption to combat climate change.
Climate Change Agreements scheme (CCA) offers tax benefits to businesses that agree to meet energy efficiency targets. This led to a collective reduction of carbon dioxide equivalent of 6.6 Million tonnes during 2019 and 2020.
This means that there will be a 13.3% reduction in overall emissions across the total 8,705 facilities who have signed up for this scheme, which is administered under the Department for Business, Energy and Industrial Strategy.
The EA’s latest biennial report, available online, shows that between 2013-2020, the CCA scheme saw total emissions reductions of 23.8 million tonnes CO2 equivalent.
Sir James Bevan is the Chief Executive of Environment Agency.
CCA is encouraging businesses to find innovative ways to reduce their energy consumption and carbon emissions. Through progressive regulation, innovation can be key.
Already we are seeing the effects of climate changes in the UK. It is crucial that businesses confront the challenge of adapting to a changing climate. Businesses need to think about energy use and natural resources such as water which will become less available in the future.
Lord Callanan, Minister of Energy and Business, stated:
The UK’s net zero target for 2050 is dependent on the industry. Today’s report demonstrates the importance of industry in helping to achieve this goal.
We expect to see continued success with the Climate Change Agreements scheme to support businesses to decarbonise while remaining competive. The UK business community is a shining example of how green and growth can be combined.
The CCA scheme encourages energy reduction across the entire industry, and also reduces carbon dioxide emissions. This will help the UK achieve net zero by 2050.
Sector associations and the Government have agreed to energy efficiency improvement targets in the CCA scheme.
Participants who achieve their energy efficiency targets are eligible for a reduction of the Climate Change Levy. This is a tax that is applied on commercial electricity, gas, or solid fuel bills.
The 2019-20 reporting period saw 1,510 (47.4%), agreements covering 3,110 facilities meet or exceed their improvement targets. Operators who failed their targets used any previously saved emissions and paid a buyout fee for each tonne of emissions that was not met.