Climate change agreements are voluntary agreements between UK industry and the Environment Agency to reduce energy consumption and carbon dioxide (CO2) emissions. In return, operators will receive a discount on the Climate Change Levy (CCL), a tax that will be put on electricity and fuel bills. The Environment Agency manages the CCA programme on behalf of the whole of the United Kingdom. It is a voluntary scheme in which eligible sectors that meet ambitious energy efficiency or emission reduction targets benefit from a 90% climate change tax rebate for electricity consumption and 65% for other fuels. CCMs have a two-phase structure, with umbrella agreements and sole proprietorships (underlying agreements). Each agreement sets objectives, defines the obligations of all contracting parties and the necessary administrative procedures. The objectives are negotiated between the sectoral federations and the government, but it is the responsibility of the sectoral associations to distribute the agreed objective among their members. Germany has a relatively high comparability with the UK in terms of economic, political and administrative context, climate ambitions and a similar mix of industrial energy fuels. The introduction in Germany of a CSF-type instrument, a voluntary agreement combined with a “credible threat”, has the potential to strengthen efforts to reduce the industrial sector. This can be done in two possible ways: the introduction of the CSF as a precondition for energy-intensive industries to qualify for an exemption or rebate on existing energy supplements or a new carbon tax; or the use of the CCA as a reference to strengthen and modify the relatively new initiative for energy efficiency networks, which is currently conceived as a simple “carrot” approach. There are two types of CSFs – ridge agreements and underlying agreements.

See list of contacts of interbranch organisations and individual sectoral agreements. How climate change agreements (CACs) work, who is eligible and which interbranch organisations have a CSF? The UK has been a global pioneer in climate policy. The Climate Change Agreement (CCA), conditioned by the Climate Change Levy (CCL), is one of the UK`s oldest climate policies and one of the most important instruments for achieving both its carbon budget targets and its clean growth strategy. . . .

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