# The Climate Change Agreements (Administration and Eligible Facilities) (Amendment) Regulations 2025, Regulation 2: Amendment of the Climate Change Agreements (Administration) Regulations 2012


(1) The Climate Change Agreements (Administration) Regulations 2012 are amended as follows.
(2) In regulation 2 (interpretation)—
(a) in the definition of “emissions” for “target unit” substitute “facility”;
(b) in the definition of “surplus”, at the end insert “in respect of a facility”;
(c) in the definition of “target” for “target unit” substitute “facility”;
(d) in the definition of “target period”, at the end insert—
“(g) 1st January 2026 to 31st December 2026;
(h) 1st January 2027 to 31st December 2028;
(i) 1st January 2029 to 31st December 2030;”;
(e) after the definition of “target period 6” insert—
““target period 7” means the target period from 1st January 2026 to 31st December 2026;
“target period 8” means the target period from 1st January 2027 to 31st December 2028;
“target period 9” means the target period from 1st January 2029 to 31st December 2030;”;
(f) omit the definition of “target unit”.
(3) In regulation 4 (the Register)—
(a) for paragraph (1) substitute—
“(1) The Secretary of State must operate an electronic system for the administration of agreements (“the Register”).”;
(b) in paragraph (2), for “administrator” substitute “Secretary of State”;
(c) in paragraph (3), in both places it occurs for “administrator” substitute “Secretary of State”;
(d) in paragraph (4), after “use the Register are” insert “the administrator,”.
(4) In regulation 5 (set up and operation of an account) omit paragraphs (6) and (7).
(5) In regulation 6 (security of the Register), in each place it occurs for “administrator” substitute “Secretary of State”.
(6) In regulation 9(3)(b) (publication) for “target unit” substitute “facility”.
(7) In regulation 12(2) (terms to be included in an underlying agreement relating to the buy-out fee)—
(a) in sub-paragraph (a)—
(i) in the opening words for “the target unit has failed to meet its targets” substitute “a facility has failed to meet its target”;
(ii) in the words after paragraph (ii) for “targets” substitute “the target”;
(b) in sub-paragraph (b)(i) for “target unit” substitute “facility”;
(c) in sub-paragraph (c)—
(i) after paragraph (i) insert—
“(ia) where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in paragraph (3) in respect of that target period, rounded up or down to the nearest pound;”;
(ii) omit the “and” at the end of paragraph (iii);
(iii) for paragraph (iv) substitute—
“(iv) S, for target periods 5, 6 and 7, is zero;”;
(iv) at the end insert—
“(v) S, for target period 8, in units of tCO2 equivalent represents any surplus in respect of target period 7; and
(vi) S, for target period 9, in units of tCO2 equivalent represents any surplus in respect of target period 7 or 8;”;
(d) in sub-paragraph (d)—
(i) omit the “and” at the end of paragraph (i);
(ii) after paragraph (i) insert—
“(ia) where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in paragraph (3) in respect of that target period, rounded up or down to the nearest pound; and”;
(e) in sub-paragraph (e) for “target unit is found to have failed to meet its targets” substitute “facility is found to have failed to meet its target”.
(8) At the end of regulation 12 insert—
“(3) The formula in this paragraph is—
A × B C × D × E × 1000 + F × G H × E × 1000 × 0 . 5 where—
(a) A is the number of pounds sterling which is specified in the Table in paragraph 42(1) of Schedule 6 on the 1st April in the first year of the relevant target period as payable by way of levy—
(i) per kilowatt hour;
(ii) on a taxable supply of electricity;
(b) B is 1, reduced by the percentage which is specified in paragraph 42(1)(ba) of Schedule 6 (reduced-rate supply of electricity) on the 1st April in the first year of the relevant target period;
(c) C is the carbon emission factor for electricity of 0.0274;
(d) D is the factor for calculating the primary energy associated with a unit of electricity supplied by an electricity utility, which is 2.1;
(e) E is the relative molecular mass of carbon dioxide to carbon, which is 44 divided by 12;
(f) F is the number of pounds sterling which is specified in the Table in paragraph 42(1) of Schedule 6 on the 1st April in the first year of the relevant target period as payable by way of levy—
(i) per kilowatt hour;
(ii) on a taxable supply of gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility which is not a reduced-rate supply;
(g) G is 1, reduced by the percentage which is specified in paragraph 42(1)(c) of Schedule 6 (reduced-rate supply of gas) on the 1st April in the first year of the relevant target period;
(h) H is the carbon emission factor for gas of 0.0497;
(i) “carbon emission factor” means the mass of carbon or carbon equivalent emitted in kilograms per kilowatt hour of energy consumed;
(j) “primary energy” means energy that has not undergone any conversion or transformation process;
(k) “relevant target period” means the target period in respect of which the formula in this paragraph is applied.”.
(9) In regulation 12A (terms to be included in an umbrella agreement relating to the buy-out fee)—
(a) in paragraph (3)—
(i) after paragraph (a) insert—
“(aa) where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in regulation 12(3) in respect of that target period, rounded up or down to the nearest pound;”;
(ii) omit the “and” at the end of paragraph (c);
(iii) in paragraph (d) for “and 6,” substitute “, 6 and 7,”;
(iv) after paragraph (d) insert—
“(e) S, for target period 8, in units of tCO2 equivalent represents any surplus in respect of target period 7; and
(f) S, for target period 9, in units of tCO2 equivalent represents any surplus in respect of target period 7 or 8.”;
(b) in paragraph (4)—
(i) omit the “and” at the end of paragraph (a);
(ii) after paragraph (a) insert—
“(aa) where the finding is of a failure to meet a target for target period 7, 8 or 9, A is the number of pounds sterling which is equal to the result of the application of the formula in regulation 12(3) in respect of that target period, rounded up or down to the nearest pound; and”.
(10) For regulation 14(2) (terms to be included in underlying agreement relating to the provision of information) substitute—
“(2) The terms referred to in paragraph (1) are that the operator must, in respect of each of its facilities—
(a) provide to the administrator on or before 1st May following the end of a target period such information as has been requested by the administrator in order to determine whether progress towards meeting the facility’s target is, or is likely to be, taken to be satisfactory;
(b) provide to the administrator on or before 1st May 2027 and on or before 1st May in each subsequent year—
(i) such information as has been requested by the administrator about the actions taken in relation to energy efficiency improvements or emissions reductions in order to meet the facility’s target;
(ii) confirmation that the facility meets the requirements of regulation 3(1)(a) of the Climate Change Agreements (Eligible Facilities) Regulations 2012; and
(iii) such information relating to the application of the UK ETS to the facility as has been requested by the administrator in order to assist the Secretary of State in carrying out functions in relation to the scheme set out in paragraphs 44 to 52 of Schedule 6;
(c) provide to the administrator on or before 1st May 2028, and on or before 1st May 2030, such information as has been requested by the administrator in order to determine whether progress towards meeting the facility’s target is, or is likely to be, taken to be satisfactory; and
(d) provide to the administrator any other information requested at any time by the administrator by the date specified in the request to enable the administrator to determine that—
(i) the facility’s target has been met; or
(ii) the operator is complying with the terms of the underlying agreement.
(3) In paragraph (2)(b)(iii), “UK ETS” means the trading scheme known as the UK Emissions Trading Scheme or UK ETS, established by the Greenhouse Gas Emissions Trading Scheme Order 2020.”.
(11) In regulation 15 (penalties)—
(a) for paragraph (1) substitute—
“(1) The administrator may impose a financial penalty on an operator if the operator, in relation to one or more of its facilities—
(a) fails to provide information in accordance with regulation 14(2);
(b) provides inaccurate information under regulation 14(2)(a), (b)(i) or (c);
(c) provides inaccurate information under regulation 14(2)(b)(iii) or (d); or
(d) fails to make any other notification required under the terms of an underlying agreement.”;
(b) in paragraph (1ZA), in the opening words after “may be imposed” insert “in relation to a facility”;
(c) in paragraph (1A)—
(i) in sub-paragraph (a) for “target unit which does not include” substitute “facility which is not”;
(ii) in sub-paragraph (b) for “target unit which includes” substitute “facility which is”;
(d) in paragraph (2), in both places it occurs for “target unit” substitute “facility”;
(e) in paragraph (2A) for “target unit which includes” substitute “facility which is”;
(f) in paragraph (2C)—
(i) in sub-paragraph (a) for “target unit” substitute “facility”;
(ii) in sub-paragraph (b) for “target unit” substitute “facility”;
(g) at the end of paragraph (3) insert—
“(iv) an amount in pounds sterling per tCO2 equivalent of the difference between the actual emissions and the reported emissions for target period 7, 8 or 9, where that amount is equal to the result of the application of the formula in regulation 12(3) in respect of that target period, rounded up or down to the nearest pound.”;
(h) in paragraph (5), in the definition of “base year”—
(i) in paragraph (a) for “target unit which includes” substitute “facility which is”;
(ii) in the opening words of paragraph (b) for “target unit which does not include” substitute “facility which is not”;
(i) in paragraph (5), for the definition of “relevant target period” substitute—
““relevant target period” means—
(a) for a penalty imposed for failure to provide information in accordance with regulation 14(2)(a), (b), (c) or (d)(i), the target period in respect of which the request for information was made;
(b) for a penalty imposed for providing inaccurate information under regulation 14(2)(b)(iii) or (d)(i), the target period in respect of which the request for information was made;
(c) for a penalty imposed for failure to provide information in accordance with, or for providing inaccurate information under, regulation 14(2)(d)(ii), the target period during which the request was made, or if the request was made after the end of all target periods to which the underlying agreement applies, the last target period to which the agreement applies;
(d) for a penalty imposed for failure to make any other notification required under the terms of an underlying agreement, the target period during which the notification was required to be made, or if the notification was required to be made after the end of all target periods to which the underlying agreement applies, the last target period to which the agreement applies.”.

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Source: https://www.legislation.gov.uk/uksi/2025/813/regulation/2 (the official version)
Page: https://openlegislation.uk/climate-change-agreements-administration-and-eligible-facilities-amendment-regulations-2025/regulation-2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.