The Government has published a discussion paper setting out its proposals for the 2016 review of Climate Change Agreements targets - including a call for evidence for the review of sector commitments.

The Departmnet for Energy and Climate Change is seeking stakeholder comment on any aspects of the proposals, together with any evidence relevant to issues raised in the Call for Evidence.

CCAs are voluntary agreements that allow eligible energy intensive sectors to receive a reduction in the Climate Change Levy of 90% for electricity and 65% for gas and other fuels if they sign up to stretching energy efficiency targets agreed with Government. A total of 53 industrial sectors across around 8,3002 sites have signed up to targets. The original targets for this phase of the scheme were agreed in 20123and apply to participating sectors from 2013 to 2020, with the scheme running until 2023.

In the Government response to the September 2011 Consultation on Simplifying the Climate Change Agreements Scheme Government stated it “would proceed with the proposal to have a target review in 2016 (which can lead to targets getting tightened or eased)” and that the Review “is intended to make sure that targets are challenging but achievable for operators”.

The purpose of the Review is to ensure that targets continue to reflect the full realistic potential for energy efficiency improvements or carbon savings. The key objectives are:

• to examine evidence on changes that have occurred since target setting in 2012 and identify sectors where the evidence points to a case for more detailed review of that sector commitment; then
• to assess whether and how the realistic potential for energy efficiency in the CCA sectors selected has changed since current sector commitments were agreed; and if appropriate, to agree revised sector commitments in accordance with the evidence.

The Review process comprises the following four stages:

1) sift and select - an initial review of all sectors in the scheme, to identify areas where changes in realistic potential may have occurred since targets were agreed in 2012, and to select sectors for detailed review accordingly;

2) detailed review of selected sectors to further quantify changes in realistic potential;

3) agreeing new sector level commitments with relevant sector associations where changes in realistic potential have been identified;

4) cascading revised sector commitments, through sector associations, to inform revised Target Unit targets.

DECC will take the decisions on which sectors will be selected for detailed review, will propose revised targets based on the evidence, and will be responsible for the process of agreeing new sector commitments

Deadline for responses to the call for evidence is 23 January 2015. Click here to access the consultation Climate Change Agreements Target Review 2016: Discussion Paper and Call for Evidence online.

DECC intends to share responses to the discussion paper with the Environment Agency as Scheme Administrator. The Department also intends to share information received in response to the Call for Evidence with the Environment Agency and their technical consultants. Information from the Call for Evidence will be used more widely within DECC to inform wider Government policy-making on energy efficiency.