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The government will extend the Climate Change Agreement scheme by two years. Participants that meet agreed energy efficiency targets between 1 January 2024 and 31 December 2024 will be entitled to reduced rates of Climate Change Levy in 2025-26 and 2026-27.
The extension will be available to new participants in currently eligible sectors.
The scheme will be open to eligible businesses for use between 1 April 2025 and 31 March 2027.
A consultation on the detail of the scheme extension and proposals for any potential scheme beyond 31 March 2027 was opened by the Department for Energy Security and Net Zero (“DESNZ”) on 15 March 2023 and will close on 10 May 2023.
Eligible businesses will be able to secure a reduction on the amounts of Climate Change Levy that they pay on energy consumed in their business operations. The reduction will be welcomed by businesses that anticipate being exposed to high energy costs for the medium term. Businesses that believe they could be affected should consider responding to the consultation by the close date.