The Climate Change Agreement (CCA) is an agreement that was introduced in the UK in 2013 in a bid to reduce carbon emissions. It is a voluntary agreement between the government and businesses in certain sectors, whereby businesses commit to reducing their carbon emissions in return for a reduction in the Climate Change Levy (CCL) – a tax on energy use.
The CCA covers a range of sectors, including manufacturing, construction, and transportation. In order to qualify for the CCA, businesses must demonstrate that they have taken steps to reduce their carbon emissions, such as implementing energy-efficient practices or using renewable energy sources.
The manufacturing sector is one of the largest contributors to carbon emissions in the UK, accounting for around 15% of the country`s total emissions. As such, it is a key sector for the CCA. Manufacturers that sign up to the CCA are required to set targets for reducing their carbon emissions, as well as evidence that they are taking steps to achieve those targets.
The construction sector is another key sector for the CCA, as it is responsible for a significant proportion of the UK`s carbon emissions. The sector is required to demonstrate that it is using energy-efficient practices and materials, as well as investing in renewable energy sources.
The transportation sector is also covered by the CCA, with businesses required to demonstrate that they are taking steps to reduce their carbon emissions, such as using lower-emission vehicles or implementing more efficient logistics practices.
Other sectors that are covered by the CCA include agriculture, water and waste management, and the public sector. Businesses in these sectors are required to demonstrate that they are taking steps to reduce their carbon emissions, as well as investing in renewable energy sources where possible.
Overall, the Climate Change Agreement is an important initiative in the fight against climate change, helping businesses to reduce their carbon emissions and promoting the use of renewable energy sources. By covering a range of sectors, it is encouraging a collaborative approach to reducing carbon emissions across the UK economy.
