The Cold Chain Federation (CCF) has announced the successful renegotiation of energy efficiency targets under the UK Government’s Climate Change Agreement (CCA), easing the compliance burden for cold storage businesses while maintaining progress toward net zero goals.
The CCA scheme, administered by CCF for the cold storage sector, currently includes around 420 chilled and frozen warehouses across the UK. It offers tax benefits to businesses that reduce their energy use and CO2 emissions, delivering collective annual savings of approximately £11 million. The revised targets follow CCF’s campaign to ensure the scheme remains achievable and cost-effective.
A new phase of the CCA scheme will begin in January 2026 and continue until at least March 2033. Under the updated terms, cold storage businesses must reduce their energy consumption by 11% by 2030 compared to 2022 levels, down from the previously proposed 20% reduction. The agreement also includes interim targets of 4.75% by the end of 2026 and 7.75% by the end of 2028. Companies failing to meet targets will be required to pay a carbon buyout fee.
Additionally, from January 2026, new facilities will be able to join the scheme at any time, replacing the previous model of infrequent application windows. This change is expected to increase participation and improve access to financial incentives.
In 2024, the sector narrowly missed its energy target, achieving a 9.7% reduction against a 10% goal based on a 2018 baseline, highlighting the growing difficulty of further gains in energy efficiency.
“This is a vital step from government in encouraging the sector to invest in energy efficiency,” said Phil Pluck, Chief Executive of the Cold Chain Federation. “The CCA is a vital catalyst to the adoption of more energy efficient technology and one that will allow the cold chain sector to better supply life-saving medicine and food in times of crisis.”
Tom Southall, Deputy Chief Executive of the Federation, added: “By utilising data from businesses to demonstrate an alternative target that was still challenging, but feasible, we have secured a deal that delivers for the cold storage industry whilst supporting the government’s efforts to move towards net zero.”
