As energy costs and sustainability pressures continue to shape the future of UK manufacturing, the Government’s Climate Change Agreement (CCA) scheme remains one of the most effective mechanisms for reducing operational costs and supporting long-term decarbonisation.
For the aluminium, titanium and magnesium sectors, the CCA offers significant potential savings. With Phase 3 of the scheme beginning in January 2026, now is the ideal time for businesses to review eligibility and ensure they are positioned to take advantage of the benefits available.
What the CCA Scheme Offers
Eligible businesses can receive substantial reductions on the Climate Change Levy (CCL), applied to energy bills for electricity and natural gas. These savings can extend until 2033, providing financial stability and supporting investment in efficiency and sustainability improvements.
Beyond cost reduction, the CCA provides a structured approach to energy management through target setting, monitoring and reporting—helping organisations strengthen their operational and environmental performance.
Why This Matters for Aluminium Businesses
Companies across the aluminium value chain—processors, recyclers, finishers, fabricators and refiners—often meet the criteria for participation. Many operations involve energy-intensive activities such as melting, casting, alloying or surface treatment, which are specifically recognised within the CCA sector definition.
For eligible sites, joining the scheme ahead of Phase 3 ensures:
- Immediate access to long-term savings
- Reduced exposure to compliance risks
- A structured pathway to improved energy performance
- Support in aligning with the industry’s sustainability commitments
ALFED’s Role
The Aluminium Federation (ALFED) administers the CCA scheme for the aluminium sector and provides comprehensive support to both new entrants and existing participants. This includes:
- Eligibility assessments and guidance on new applications
- Migration support for Phase 3
- Reporting and data management
- Target setting and performance tracking
- Liaison with the Environment Agency
- Updates on scheme changes and audit expectations
This ensures that businesses remain compliant, informed and able to maximise the scheme’s value.
Considering the CCA Scheme? We Can Help
If your organisation pays the Climate Change Levy and operates aluminium, titanium or magnesium processes, it may be eligible to join the scheme ahead of the 2026 reporting window.
ALFED offers a free initial eligibility review and can guide you through the next steps.
For more information or to discuss your site’s suitability, please contact:
alfed@alfed.org.uk
To find out more about CCA, please head to the ALFED Sustainability webpage to view the ALFED member and non-member brochures: Sustainability – ALFED
