Writing in a foreword to the document, published today, Climate Change Minister Greg Barker predicted the proposals will save individual businesses between £2.4m and £3.4m over the 10 year life span of the scheme.
The government pledged to review its CCA regime when it announced proposals to simplify the parallel Carbon Reduction Commitment (CRC) scheme in June.
The scheme was launched 10 years ago following warnings that the Climate Change Levy (CCL), which is charged on non-domestic energy supplies, could impact the competitiveness of energy intensive industry.
Under the scheme, large energy users that sign up to CCAs receive 65 per cent discounts on the CCL through to March 2013 if they meet agreed energy efficiency targets.
Building on consultations by the previous government in 2009 and 2010, the coalition confirmed its commitment to a new scheme running through to 2023 as part of this years Budget, subject to State Aid approval from the EU.
However, it said that it also wants to simplify and streamline the operation of a new scheme, as well as improve the transparency and accountability of CCAs.
"I am keen to ensure that a revitalised CCA scheme provides industry with the space in which to build on the energy efficiency improvements of the past 10 years and create world beating energy efficient industries which can form a core part of our growing low carbon economy," Barker wrote in the foreword.
His proposals include guaranteeing that 54 sectors remain eligible for CCAs, but blocking new sectors from joining the scheme - a position that would then be reviewed in 2020.
In addition, installations whose eligible energy use is more than 70 per cent of the sites total energy consumption would now be able to claim CCL discount on their entire energy use.
Currently, 90 per cent of the sites energy has to be eligible and the government calculates around 450 more participants who currently claim CCAs will be able to get the CCL discount for the whole of their site as a result of the new rules.
The government would also bring in energy efficiency target periods from 1 January that would run for two years. Emissions data would then be published at the end of each period in an attempt to ensure public scrutiny of corporate attempts to improve energy efficiency and reduce carbon emissions.
Under the proposals, the UKs emissions trading registry could then be replaced with a scheme that would allow some participants to buy-out any shortfall against their targets.
The buy-out price would either be set at a flat rate of £12, linked to a CO2 equivalent based on the current CCL price for electricity, or tied to the carbon price set by the EU emissions trading scheme (EU ETS).
The consultation is open until 28 October.
source: AEPC-VC Korea
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