On 31 July 2020 the UK Government announced its response to its recent consultation on the extension of the Climate Change Agreement (CCA) scheme.

The scheme closed to new entrants in 2018.  However, in its 2020 Spring Budget the Government proposed to extend existing CCAs to 2025 and to re-open the scheme for new entrants.  The present consultation was launched to gather views on this proposal and to canvass initial thoughts on potential reforms for a future CCA scheme.

The extended CCA will operate on broadly the same basis as the existing scheme, including in respect of eligibility criteria.  It is worth noting that, in light of COVID disruption, the deadline for applications to participate in the extended scheme have been pushed back from September to 30 November 2020.

In its response the Government does not express views on reform of any future CCA scheme, simply thanking respondents for their input.  However, the fact that this is being seriously considered (and the pressure to take concrete steps to advance the Net Zero agenda) is a strong signal that we should expect to see CCAs, in some form, well past 2025.