{
  "url": "https://openlegislation.uk/climate-change-agreements-administration-and-eligible-facilities-amendment-regulations-2020/note",
  "json_url": "https://openlegislation.uk/climate-change-agreements-administration-and-eligible-facilities-amendment-regulations-2020/note.json",
  "legislation": "uksi/2020/958",
  "legislation_title": "The Climate Change Agreements (Administration and Eligible Facilities) (Amendment) Regulations 2020",
  "legislation_url": "https://openlegislation.uk/climate-change-agreements-administration-and-eligible-facilities-amendment-regulations-2020",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations extend the scheme providing for a reduced rate of Climate Change Levy until 31st March 2025. Part IV of Schedule 6 to the Finance Act 2000 makes provision for a reduced rate of Climate Change Levy to be charged if a facility which receives supplies of energy is certified as being covered by a Climate Change Agreement for a certification period.\nRegulation 2 amends the Climate Change Agreements (Administration) Regulations 2012 (S.I. 2012/1976) to provide for a new target period from 1st January 2021 to 31st December 2022. During a target period, a facility must meet targets for energy use or emissions which are specified in a Climate Change Agreement in order to be eligible for a reduced rate of Climate Change Levy. If a facility does not meet any target for a target period, it may pay a buy-out fee on each tonne of carbon dioxide equivalent by which it falls short of meeting that target. If a facility overachieves against a target, there will be a surplus, being the amount by which the reduction in emissions has exceeded the target.\nRegulation 2 also amends the terms to be included in an underlying agreement relating to the buy-out fee, and amends the formulas to provide that any surplus will not be taken into account in calculating the buy-out fee for the new target period. Amendments to the financial penalty provisions include a new definition of “base year” and link the calculation of a financial penalty to the relevant target period.\nRegulation 2 also inserts a power for the administrator to vary a climate change agreement to take account of any changes in the terms specified by that statutory instrument from time to time as terms which must be included in agreements.\nRegulation 3 amends the Climate Change Agreements (Eligible Facilities) Regulations 2012 (S.I. 2012/2999) to extend the scheme until 31st March 2025.\nA full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2020/958/note",
    "retrieved_at": "2026-10-28T22:25:58.384189+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}