Tuesday 14th of November 2023 | Posted In: Compliance

A win for horticulture and poultry businesses participating in the Climate Change Agreement Scheme

NFU Energy is delighted to announce a significant victory for horticulture and poultry businesses participating in the Climate Change Agreement (CCA) scheme. Following a recent decision to extend the CCA scheme by an additional two years, with the closing date now set for March 2027, a new Target Period 6 has been introduced. This comes as a result of the Department for Energy Security and Net Zero (DESNZ) proposing a target-setting strategy based on sector performance during the last Target Period.

DESNZ initially suggested ambitious reduction targets to be met by the end of Target Period 6, which was set to conclude in 2024, based on 2018 baseline. These targets were as follows:

•    NFU4 (Horticulture) – 40.9% improvement in energy efficiency
•    NFU5 (Poultry) – 12% improvement in energy efficiency

NFU Energy expressed its concerns that these proposed targets did not accurately reflect the energy efficiency of participating businesses. The last Target Period was marked by an unexpected surge in energy prices, which forced businesses across the UK to adopt drastic measures to their usual operations.

We are pleased to announce that, thanks to the valuable feedback provided by participants of the scheme, and the unwavering support of the National Farmers' Union (NFU), a new set of reduction targets has been agreed upon. These revised targets reflect a fair and realistic approach to energy efficiency for horticulture and poultry businesses participating in the CCA scheme.

The revised Target Period 6 reduction targets are as follows:

•    NFU4 (Horticulture) – 13% improvement in energy efficiency
•    NFU5 (Poultry) – 10% improvement in energy efficiency

This achievement could not have been realised without members’ participation in our surveys and the relentless advocacy of the NFU, who tirelessly pushed for these changes. The revised targets are a testament to the power of collaboration and the commitment of the horticulture and poultry sectors to sustainable energy practices.

NFU Energy and the NFU firmly believe that the Climate Change Agreements represent one of the few government incentive schemes that consistently encourage energy users to adopt better practices. By making progressive energy efficiency improvements, participants in the CCA scheme are not only boosting resource use efficiency and productivity but also reducing their environmental impact. This win not only benefits the participating businesses but also contributes to the broader goals of a more sustainable and environmentally responsible future.

We extend our gratitude to all the businesses, individuals, and organisations that have contributed to this achievement. 

For further information and updates on the NFU Climate Change Levy (CCL) Scheme can be found here. Alternatively call 024 7669 6512.