The UK Government has confirmed that a new phase of the Climate Change Agreements (CCA) scheme will begin in January 2026, offering businesses in the Pig, Poultry, and Horticulture sectors a valuable opportunity to reduce energy costs and support net-zero goals.
This blog provides a quick overview of what’s coming and what you should be doing now to prepare.
What is the CCA Scheme?
The CCA scheme is a voluntary initiative that allows eligible energy-intensive businesses to receive a discount on the Climate Change Levy (CCL) — a tax added to electricity and fuel bills — in return for meeting energy efficiency or carbon reduction targets.
This not only leads to financial savings but also supports broader efforts to reduce greenhouse gas emissions across the UK economy.
Why is there a new phase?
The current CCA scheme is coming to an end in March 2025. Following strong industry engagement, the government has announced a new CCA phase beginning in January 2026 and running through to 2033. This decision reflects the importance of supporting sectors like Pig, Poultry, and Horticulture through the green transition.
Key timelines
- Autumn 2025: The window for applying to the new scheme is expected to open.
- January 2026: The new scheme officially starts.
- 2033: Scheme ends, giving a potential 8-year benefit period for eligible sites.
What's new or different?
While many elements of the scheme will remain familiar, there are expected to be updates, including:
- New baseline set as 2022.
- Proposed Targets for the sectors issued.
- Eligibility criteria remains unchanged.
- Updates to carbon factors and a change to energy related to renewable uses on site.
- Buyout fees increase in line with CCL rates and will be set at £37 per tonne of CO2 but reviewed at different Target periods.
- Each site registered on the scheme will report as standalone and removes the previous mechanism of bubbling sites into one agreement.
- Over performance allows the site to bank its carbon savings to offset against future reporting periods.
- Three target periods set as Target Period 7, 8 and 9.
- The ability to introduce new products under NOVEM which benefits those whose operation has significantly changed from 2022.
Migration to the new CCA Scheme – new and existing
Organisations currently participating in Phase 2 will be contacted in due course to confirm their migration onto the new scheme. Where available, we will provide participants with their 2022 base year data and existing company information to help ensure the new agreement is set up correctly.
If you are not currently participating in the scheme, or if you have additional sites that may benefit, you can begin preparing your application ahead of the upcoming application window. Scheme eligibility remains unchanged. We encourage you to contact us to discuss your eligibility before submitting an application. If viable, we will provide the relevant application pack to help you prepare the necessary documentation.
Stay updated
We’ll continue to share updates as more detail emerges. The new CCA scheme represents a major opportunity, but you’ll need to be prepared to make the most of it.
If you have any questions or want help reviewing your site’s eligibility or energy data, don’t hesitate to get in touch on 024 7669 6512 or [email protected].