Cold Chain Federation Supports U.K. Operators Continuing to Get Tax Cuts for Efficiency Improvements

The Cold Chain Federation, a U.K.-based trade group, expressed its support for an extension to the U.K. government’s voluntary cold storage Climate Change Agreement (CCA) scheme, which provides cold storage operators with tax breaks for efficiency improvements.

Energy-intensive industrial, commercial, agricultural and public services pay a climate change tax on electricity, gas and solid fuels based on amount of usage. The CCA began in 2001, and is the only plan helping businesses like cold storage meet targets for improving the energy-efficiency of their facilities in return for a discount on their tax, according to a Cold Chain Federation press release.

Under the CCA, energy intensive businesses can get a 90% reduction for electricity and a 65% reduction for gas, liquefied petroleum gas (LPG), coal and other solid fuel, according to a U.K. informational site. 

The CCA scheme has enabled cold storage facilities to save a collective £10 million (US$12.7 million) annually.

The original scheme was closed to new applicants in 2018 and scheduled to conclude in 2023. However, in March 2020 the U.K. government announced that the CCA scheme was to be extended until 2025 and reopened to new applications.

“The Cold Chain Federation has today submitted its support in response to the Government’s consultation on the details of extending the scheme.” according to the release, dated June 11, 2020.

Currently, 400 cold storage facilities have signed up to the CCA. “Collectively, they have made a 16% improvement in the energy efficiency of their cold storage facilities between 2012 and 2018, beating the sector’s scheme target,” according to the Cold Chain Federation. 

New Applicants Welcome

“Driving energy efficiency is good for business and good for the environment,” according to Shane Brennan, Chief Executive of Cold Chain Federation. “Through our Climate Change Agreement we are leading our industry to achieve this double benefit.”

To this end, the Cold Chain Federation is seeking applicants for the extended scheme.

“We are urging business to act fast,” said Brennan. “Applying to join the cold storage CCA is straightforward but it does take time and the deadline for getting your application to us is 28th August, so we advise businesses to start the process by early July.”

The Cold Chain Federation is encouraging potential applicants to contact them for assistance. It administers the scheme and thus “can provide support and advice to cold storage businesses wanting to apply for the first time, and to those wanting to add a new facility to their existing agreement,” Brennan said.

For more information on applying for the scheme, potential applicants should email info@coldchainfed.org.uk, call the Cold Chain Federation at 0118 988 4468, or consult the group’s website.