Climate Change Agreements (CCA) for Data Centres
CCAs are part of the Government’s policy to reduce use of energy and hence reduce CO2 emissions. In return, operators receive a discount on the Climate Change Levy (CCL), a tax added to electricity and fuel bills. The Environment Agency (EA) administers the CCA scheme on behalf of the whole of the UK.
The scheme has been running since about 2001 over two phases. In return for a reduction in paying Climate Change Levy (CCL), participants are given energy efficiency targets. These targets are sector-specific so they can be tailored to what that sector can achieve.
CCAs accommodate growth by focusing on energy efficiency instead of net reductions, they are particularly suited to drive efficiency improvements in sectors like data centres that are energy intensive, growing fast, and vulnerable to overseas competition.
techUK is the UK trade body for the digital technology industry and we administer the Climate Change Agreement for the UK’s data centre sector. Trade Association members are charged at a discounted rate. Over 170 data centre sites currently participate in the scheme, which provides much-needed support, helping to level the playing field on energy costs between the UK and other markets, and boosting investor confidence.
SLR Consulting Ltd has been appointed by techUK to administer CCAs for data centres: Liaise between data centre operators, EA and AEA. CCA Helpdesk reviews submitted application, advises on amendments and submits to
the EA Registry for approval and deals with queries.
Originally the current scheme was planned to run from 2013 to 2023 with four 2 year ‘target periods’ (TP1 – TP4). In 2023, the newly formed Department for Energy Security and Net Zero’s (DESNZ) – previously part of BEIS – consulted on extending the CCA until March 2025 and on a future scheme. techUK responded to the consultation on behalf of our techUK data centres operators members (please find techUK’s response on behalf of the sector here).
The full suite of techUK CCA Guidance Notes are listed below:
Full list of Guidance, including glossary, obligations and penalties, can be found on the techUK Data Centres Programme “Index” page.
For any further questions on the CCA, please contact [email protected] or call +44 (0)844 800 1880.
Find out more about the Data Centres Programme here.
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