The pilot study described in this paper has investigated how UK Climate Change Agreements have affected the operations of British small and medium sized enterprises, using semi-structured interviews in a sample of companies. Results from the interviews show that the decision to sign a Climate Change Agreement was primarily economic, driven by the financial incentive of recouping up to 80 per cent of the Climate Change Levy. The procedures introduced to meet the Agreement's targets also assisted in coping with subsequent rising energy prices. Further discussions also revealed that trade associations played a positive role in providing information about opportunities provided by Climate Change Agreements and assistance in completion of the relevant documentation. The research also shows that the choice of relative, rather than absolute, targets has caused recent difficulties in view of lower production volumes during the economic downturn.
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