Why Plastics Processors Should Join the Climate Change Agreement (CCA) Scheme

Cut Costs, Boost Efficiency and Achieve Net Zero

As the UK intensifies efforts to reach net-zero emissions, plastics processors are under increasing pressure to improve energy efficiency and reduce carbon output. Fortunately, one of the most impactful ways for plastics manufacturers to meet these goals while significantly reducing operating costs, is by joining the Climate Change Agreement (CCA) scheme.

Run by BPF Energy, the CCA scheme enables eligible plastics companies to receive major discounts on the Climate Change Levy (CCL). Providing participants up to 92% off electricity and 89% off gas through Climate Change Levy (CCL) discounts, while committing to measurable energy efficiency targets.

In this article, we’ll walk you through the biggest benefits of the CCA scheme for plastics manufacturers, how you can get involved, and why now’s a great time to take that first step toward saving energy and money.

1. What is the CCA Scheme?
2. Why Plastics Companies Can’t Afford to Ignore the Climate Change Agreement (CCA)
3. How to Get Involved

 

 

What Is the CCA Scheme?

The CCA is a voluntary initiative established by the UK government to promote energy efficiency and reduce CO₂ emissions within energy-intensive industries. Administered by the BPF Energy, the scheme offers significant benefits to eligible plastics manufacturers:

• Substantial Discounts on Energy Bills: Participants can receive up to 92% off the Climate Change Levy (CCL) on electricity and up to 89% on natural gas, translating to potential savings of £56,000 annually for electricity and £7,500 for gas.
• Structured Energy Efficiency Targets: The scheme sets clear energy reduction targets, encouraging continuous improvement and fostering a culture of sustainability within organisations.
• Enhanced Industry Reputation: Participation underscores a company's commitment to environmental responsibility, enhancing its reputation among stakeholders and consumers alike.

Why Plastics Companies Can’t Afford to Ignore the Climate Change Agreement (CCA)

Beyond the immediate financial incentives, engaging with the CCA scheme offers strategic advantages:

• Operational Efficiency: The process of setting and striving towards energy efficiency targets often leads to the identification and elimination of wasteful practices, resulting in long-term cost savings.
• Regulatory Preparedness: As environmental regulations become more stringent, being part of the CCA scheme positions companies to adapt proactively, ensuring compliance and avoiding potential penalties.
• Market Differentiation: In an era where consumers and partners prioritise sustainability, being a CCA participant can differentiate a company in a competitive market.

 

How to Get Involved

Plastics companies interested in joining the CCA scheme should get in touch by summer 2025, ahead of the application window for the new cycle starting on 1 January 2026. The process involves:

• Registration of Interest: Contacting the BPF Energy team to express intent.
• Data Submission: Providing necessary energy consumption and throughput data for baseline assessment.
• Formalised Agreement: Upon approval, entering into the CCA agreement and implementing energy efficiency measures.
• Claiming CCL Relief: Submitting the required forms to HMRC and energy suppliers to avail of the CCL discounts.

 

The CCA scheme is more than a financial incentive; it's a step towards sustainable manufacturing. By participating, plastics processors not only benefit economically but also contribute to the UK's broader environmental goals. As the industry continues to evolve, embracing initiatives like the CCA scheme will be crucial in shaping a resilient and responsible sector.

For more information or assistance with the application process, visit the BPF Energy CCA page or contact the team at [email protected].

 

Author: T. Mclean, Content & Marketing Executive