CCL discount · targets · facilities
Climate Change Agreements software: hit the target, keep the discount
Climate Change Agreements software tracks a facility’s energy performance against the target that earns it a Climate Change Levy discount.
It is a small, specialist category: most tools are energy management platforms with a CCA module.
The scheme is explained on the Climate Change Agreements guide.
The scheme
What does CCA software need to track?
A CCA is a voluntary levy-discount scheme: supplies to a certified facility are charged at a reduced rate of Climate Change Levy (Finance Act 2000 Sch 6 para 44).
It is not a disclosure or audit duty, so it should not be confused with SECR or ESOS.
| Target period | Dates |
|---|---|
| Target period 7 | 1 January to 31 December 2026 |
| Target period 8 | 1 January 2027 to 31 December 2028 |
| Target period 9 | 1 January 2029 to 31 December 2030 |
Shortfalls
How should CCA software handle a missed target?
From target period 7 the buy-out price is a formula linked to the Climate Change Levy rates, not a fixed figure (SI 2025/813).
So the software should model the shortfall in tonnes and the buy-out cost under the current formula before the period closes.
DESNZ owns the policy, the Environment Agency enforces individual businesses, and HMRC owns the sector definitions.
Energy management
Does CCA software need ISO 50001?
No: the government decided in October 2024 that an energy management system will not be mandatory for the new scheme (DESNZ).
An ISO 50001 system still makes the data easier to defend, and it is one of the two ESOS routes; see ISO 50001 software and energy management software.
The demonstration
What should you test before buying?
Bring a year of energy and throughput data for one facility.
Software demo · evidence check
CCA demo coverage
Tick a test only when the vendor has demonstrated it with a representative record and shown the evidence or export.
0 of 5 tests demonstrated (0%). This is a checklist result, not a score for the vendor.
Still to test: Calculate performance against the facility’s target for the current period; Separate eligible and ineligible energy; Model a shortfall and its buy-out cost under the current formula; Produce the data the administrator asks for; Export the energy and throughput records.
Frequently asked
Climate Change Agreements software, answered
What is Climate Change Agreements software?
Software that collects a facility’s energy and throughput data, tracks performance against its CCA target for each target period, and prepares the data the scheme administrator asks for.
Is a Climate Change Agreement a reporting duty?
No. It is a voluntary scheme that gives a discount on the Climate Change Levy in return for energy or carbon targets; it is not a disclosure or audit duty like SECR or ESOS.
What are the current CCA target periods?
Target period 7 is calendar 2026, target period 8 is 2027–2028 and target period 9 is 2029–2030.
Do I need ISO 50001 for a CCA?
No. The government decided in 2024 that an energy management system will not be mandatory for the new scheme.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
- LegislationFinance Act 2000, Schedule 6 paragraph 44
- LegislationSI 2025/813 regulation 2
- LegislationClimate Change Agreements (Administration) Regulations 2012
- DESNZClimate Change Agreements: government response 2024
- Environment AgencyClimate Change Agreements
- HMRCClimate Change Levy rates
- ISOISO 50001:2018
- Environment AgencyHow to comply with ESOS Phase 4