DESNZ originally proposed a challenging 40.9% energy efficiency improvement target for horticulture and a 12% target for poultry.
Recognising that these proposed targets did not accurately reflect the energy efficiency of participating businesses, NFU Energy, with support from the NFU, advocated for more achievable targets.
As a result of this work, DESNZ agreed to extend the CCA scheme by an additional two years until March 2027.
They also revised energy efficiency improvement target to 13% for horticulture and 10% for poultry.
Climate change agreements are voluntary agreements made between UK industry and the Environment Agency to reduce energy use and carbon dioxide (CO2) emissions. In return, operators receive a discount on the CCL (Climate Change Levy), a tax added to electricity and fuel bills. The Environment Agency administers the CCA (Climate Change Agreement) scheme on behalf of the whole of the UK.
“British farmers and growers play a crucial role in producing sustainable and climate-friendly food. The sector has an ambition to achieve net-zero emissions by 2040 which must be matched by government policy, and the CCA scheme is a step towards reaching that goal.”
NFU Deputy President Tom Bradshaw
Significant victory
NFU Energy Managing Director Tim Crocker said: “This is a significant victory for horticulture and poultry businesses participating in the Climate Change Agreement scheme.
“By working collaboratively with both members and the NFU it meant that we could successfully advocate for revised reduction targets that accurately reflect the challenges faced by businesses in the Last Target Period.
“We, at NFU Energy, extend our gratitude to all those that have contributed to this achievement.”
More inclusive schemes needed
NFU Deputy President Tom Bradshaw said: “The revision of these targets is a win for collaboration and the commitment to sustainable energy practices, and they are now fair and realistic for the horticulture and poultry businesses involved in the scheme.
“The CCA is one of the few government incentive schemes that has consistently encouraged energy users to do the right thing and make positive changes to boost their efficiency and productivity and reduce their environmental impact.
“While we want to see this scheme continued long-term, we also believe any future replacement schemes should be more inclusive, reaching farmers and growers outside the current target sectors.
“British farmers and growers play a crucial role in producing sustainable and climate-friendly food. The sector has an ambition to achieve net-zero emissions by 2040 which must be matched by government policy, and the CCA scheme is a step towards reaching that goal.”
