The Climate Change Agreements (Eligible Facilities) Regulations 2012 is a set of regulations introduced by the UK Government to encourage industries to reduce their carbon emissions. These regulations provide a framework for facilities that are eligible for Climate Change Agreements (CCAs) and outline the requirements and conditions for participation.

CCAs are voluntary agreements between the UK Government and eligible facilities in various industrial sectors. These agreements offer a discount on the Climate Change Levy, an environmental tax on energy use, in return for the facility meeting agreed-upon targets for reducing carbon emissions. The aim of CCAs is to incentivize industries to reduce their carbon footprint and contribute to the UK`s climate change targets.

The Eligible Facilities Regulations 2012 set out the criteria that industrial facilities must meet to be eligible for CCAs. Some of the key conditions include:

– The facility must be in an eligible sector, which includes industries such as cement, chemicals, iron and steel, and paper.

– The facility must have an energy intensity of at least 3.25 GJ per tonne of product.

– The facility must have an emissions intensity of at least 0.29 tonnes of CO2 per tonne of product.

– The facility must have a plan in place to reduce its carbon emissions.

Once a facility meets these criteria and is accepted into a CCA, it must meet certain obligations to remain eligible for the discount on the Climate Change Levy. These obligations include:

– Meeting annual carbon reduction targets.

– Submitting regular reports on energy use and carbon emissions.

– Participating in third-party verification of energy and emissions data.

Facilities that do not meet their obligations may lose their eligibility for the discount on the Climate Change Levy, which can result in financial penalties.

The Climate Change Agreements (Eligible Facilities) Regulations 2012 are an important step towards reducing carbon emissions in the UK`s industrial sectors. By incentivizing facilities to reduce their environmental impact, these regulations encourage businesses to take responsibility for their contribution to climate change. As the UK continues to work towards its climate change targets, CCAs and regulations such as these will play a vital role in creating a more sustainable future.