Eligibility

The eligibility criteria for the Packaging and Industrial Films (PIFA) Climate Change Agreement is:

An installation or site where plastic film is produced using extrusion to convert melted polymer into blown or cast film: all processes and activities involved in the production of plastic film using extrusion to convert melted polymer into blown or cast film, and which may include printing using organic solvents in the following processes; lithography, letterpress, flexography, gravure and screen printing on plastic film.

 

Assessing the CCA Eligible Energy

The energy consuming areas on the site should be identified under three categories:

1.    Stationary technical unit (STU) – The eligible process(s)
2.    Directly associated activities (DAAs) – Energy consumed by activities supporting the eligible process (compressors/ chillers / vacuum feeds /lighting etc.)
3.    Other activities – energy consumed in all areas not technically linked or supporting the eligible process, also known as non-eligible (offices, kitchen, store room etc.)

 

The 70% rule 

The basic principles of the rule is as follows:

If the installation (STU and DAA) consumes 70% or more of the site’s total energy, the site as a whole is deemed to be fully eligible.
If the installation consumes less than 70% of the site’s total energy the site is allowed to claim an additional 3/7th of the installations eligible energy consumption as eligible. However the defined installation and any 3/7th addition must be sub-metered.

 

Base year and targets

The base year should be 12 months of consecutive energy consumption and throughput data. Historically the base year has been set at 2008 however with the CCA extension announced in the Spring 2020 Budget the base year has been adjusted to 2018. Where 2018 is not available (e.g. because the facility opened after this date) then the closest 12 months of continuous data to this may be used.

All participants of the CCA scheme have an efficiency improvement target set against the baseline; for the Packaging and Film CCA it is possible to report against a standard relative energy target or a novem energy target

A Relative target considers all the energy consumed and production throughput for the site as a whole (for example there is one overall measure of kWh/tonne)

A Novem target is used when the site produces two or more products or product groups which have very different energy intensities or where the current operation and or product mix has changed since the base year (in this case each product or product group has a defined kWh/tonne)

Operators who commit to a CCA are required to work towards energy efficiency improvement targets. The Packaging and Film CCA  improvement target under Phase II of the scheme is 5.9% against a base line of 2008. The sector commitments were agreed between DECC and the sector associations in 2012 and form the overall energy efficiency improvement until 2020.

In the Spring 2020 budget a two year extension was announced for the CCA scheme resulting in a further target period for 2021-2022 with CCL relief entitlement set to continue until March 2025. The energy efficiency improvement target for Target Period 5 (2021-2022) is 4.068% set against a new 2018 base year.  

Under Phase II  of the scheme there were initially four target periods, each 24 months starting on 1st January.The first target period under Phase II of the scheme was 1 January 2013 to 31 December 2014. The Government have since confirmed two extensions to the scheme, Target Period 5 (January 2021 to 31 December 2022) and Target Period 6, a 12 month target period (January to December 2024). Both target period 5 and 6 have a baseline year of 2018. The latest extension to the scheme allows for CCL relief for eligible facilities until 31 March 2027. 

TP1 (2013-2014)	TP2 (2015-2016)	TP3 (2017-2018)	TP4 (2019-2020)	TP5 (2021-2022)	TP6 (2024)
2.9%	3.933%	4.917%	5.9%	4.068% (BY 2018)	4.068% (BY 2018)

          
Where the target is not met, an operator can remain a participant in the scheme, through a CO2e Buy-out mechanism to account for the difference between actual and target performance. This was set at £12/tonne for Target Period 1 and 2, rising to £14/tonne for Target Period 3 and 4. Under Target Period 5 (2021-2020) the buy-out was £18/tonne and for Target Period 6 (2024) this is increasing to £25/tonne.  

Targets applied to individual target units may vary from the sector commitment. New scheme entrants with a 2008 baseline are expected to adopt the target profile of the sector however this may vary following the application of the target stringency test. This test is where an adjustment is made if the recent performance indicates that the improvement target has already been achieved. This is in line with BEIS' policy objective for the CCA scheme which states that the scheme offers a reduction in the Climate Change Levy (CCL) in exchange for challenging energy efficiency improvement targets.

 

Fees 

At the point of CCA activation the BPF will send you a CCA Partner Application Form that will include the Joining and Annual Fees. The CCA fees are based on the base year primary (delivered electricity to site muliplied by 2.6 plus other fuels) energy at the site. 

-    Small sites            up to 5,000 MWh per year 
-    Medium sites        between 5,001 – 15,000 MWh per year
-    Large sites            between 15,001 – 50,000 MWh per year
-    Very large sites     over 50,001 MWh

 

Joining Fee	BPF members  (£ per site)	Non-members  (£ per site)
Band A (small site)	550	950
Band B (Medium site)	700	1550
Band C (Large site)	1450	2900
Band D (Very large site)	2025	3800

 

Annual Fee	BPF members  (£ per site)	Non-members  (£ per site)
Band A (small site)	550	950
Band B (Medium site)	700	1550
Band C (Large site)	1450	2900
Band D (Very large site)	2025	3800

 

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