CRC may go as DECC sets out its options for change

2nd March 2011


Rexfeatures 1057404bi

Related Topics

Related tags

  • Reporting ,
  • Mitigation

Author

IEMA

Plans to further simplify the Carbon Reduction Commitment Energy Efficiency scheme (CRC) could see it either merge with other climate-change policies, such as the existing Climate Change Levy or possible mandatory greenhouse-gas reporting, or even disappear altogether.

DECC, which has issued separate “informal” discussion papers outlining options for simplifi cation in fi ve areas (see box below), says that it welcomes views on fundamental change to the scheme.

However, under the enabling legislative framework – Climate Change Act 2008 – any modifi cation that does not include a market for trading allowances would see the abolition of the scheme.

Although the energy and climatechange department stresses that the papers are not government policy, just options for consideration, some businesses have criticised the possibility of closure.

“We have been promised simplification of the CRC and its abolition would be the ultimate blunt instrument to achieve this,” comments Stuart Bowman, director of energy and sustainability, at consultancy hurleypalmerflatt.

Following the changes made to the CRC in the Comprehensive Spending Review last November, Bowman says that participants urgently need clarity not more radical alterations: “Our recent research found that, even for those taking a best-practice approach, CRC compliance would currently cost £430,000 for an organisation with a £1 million annual energy spend.

"With substantial sums of money in play it’s time to stop the confusion and agree a way forward.”

Abolishing the scheme is only one option, however. Others include aligning the scope of both existing qualification criteria – the presence of one or more half-hourly electricity meters (HHMs) settled on the half-hourly market and annual consumption of at least 6,000MWh of electricity – to focus on settled HHMs only.

DECC says that such a move would simplify the process for assessing qualification and enhance the administrator’s ability to verify registration accuracy.

To maintain participation levels, it would also mean lowering the current 6,000MWh threshold, bringing smaller organisations into the scheme.

DECC says that any future formal legislative proposals would be subject to public consultation and that its intention is that these would come into force through affirmative Orders in Council before registration for the second phase of the scheme begins in April 2013.

The deadline for responses to the papers is 11 March.


Simplifying the CRC

The five priority areas highlighted by DECC:

  • Private sector organisational rules.

  • Review of supply rules.

  • Qualification criteria.

  • The overlap between schemes – especially between the CRC, climate-change agreements and the EU emissions trading scheme.

  • Timing and frequency of trading allowances from 2012 onwards.

Further areas where change may be needed:

  • The reputational incentives of the scheme.

  • Definition of transport used in the scheme.

  • Treatment of public versus private sector participants.

  • Treatment of heat.

  • Landlord/tenant relationships/responsibilities.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

Multinational corporations are undermining their net-zero commitments with excessive air travel and no plans to reduce ‘the low hanging fruit’ of carbon footprints, a study by Transport & Environment has found.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

Large businesses across the world are avoiding climate action due to fear they will be called out for getting their work wrong, according to a new Carbon Trust report.

29th February 2024

Read more

A thought-provoking discussion on how storytelling can change the world took place in Central London last night, alongside an exclusive sneak preview of an upcoming IEMA film series.

29th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close