Data centres get Climate Change Agreement

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It is the first industry that does not manufacture physical products to get a CCA, meaning exemption from the Climate Change Levy.


Getting a CCA: Data centres are the first non-manufacturing industry to get a Climate Change Agreement and CCL exemption

Climate Change Agreements (CCAs) allow the 50 most energy intensive industries in the UK partial exemption from the Climate Change Levy, in return for meeting energy saving targets.

Currently there are around 50 industries that have CCAs in place. They have traditionally received a discount of 65% on the Climate Change Levy for electricity, but this rose to 90% in April 2013.

The scheme was administered by DECC until April 2013. From 2013 – 2023 the scheme will be administered by the Environment Agency, with the discount being raised to 90 per cent.

This should allow the UK data centre industry to continue to compete on a global playing field that is becoming increasingly competitive.

The move signals a keen desire from The Chancellor George Osborne to support and encourage digital industries in the UK.

Industry body techUK has been campaigning for years to get a CCA for data centres.

Associate Director of Climate Change Programmes at techUK, Emma Fryer said: “We are delighted that the Chancellor has recognised the importance of technology with the introduction of a climate change agreement (CCA) for data centres. This comes after our sustained campaign to ask government to apply a more intelligent approach to improving energy efficiency without penalising growth in this important sector.”

Links: techUK campaign to secure a CCA succeeds – techUK | Climate Change Agreements (CCAs) – GOV.UK | Climate Change Agreements Scheme – Environment Agency