Data Centres To Receive A CCA By The End Of This Year

Summary and implications

The Chancellor of the Exchequer, George Osborne, announced in his Autumn Statement on 5 December 2013 that the Government will introduce a climate change agreement (CCA) for the UK data centre sector by the end of 2013.

CCAs are part of a package of government measures to tackle climate change that are designed to encourage UK business to save energy and reduce carbon dioxide emissions.

The package of mechanisms also includes the Climate Change Levy (CCL), the EU Emissions Trading System and the CRC Energy Efficiency Scheme (CRC).

What are climate change agreements?

CCAs are voluntary agreements containing targets for eligible industry sectors to increase energy efficiency or reduce carbon dioxide emissions. Operators who hold a CCA are eligible to claim a discount to the CCL charged on their energy bills. From 1 April 2013, participants can start claiming their CCL discount at the revised rate of 90 per cent for electricity and 65