DECC launches final efforts to simplify CRC

30th March 2012

Related Topics

Related tags

  • Water ,
  • Resource extraction ,
  • Engineering and metals ,
  • Chemicals ,
  • Energy



Participants of the Carbon Reduction Commitment Energy Efficiency scheme (CRC) would complete fewer reports and not have to buy allowances for sites covered by other emissions trading schemes, under DECC's latest proposals to simplify the scheme

Following the chancellor’s Budget pledge to scrap the CRC if the administrative burdens on participants couldn’t be reduced, DECC has launched a consultation outlining potential amendments to the scheme’s registration criteria, reporting requirements and allowance sales.

The proposals are, in the main, the same as those announced eight months ago by energy minister Greg Barker and include reducing the number of fuel types that participants have to report on from 29 to four, scrapping the “cap” element of the scheme and allowing large organisations to report as individual units rather than groups.

Other suggestions to streamline the system include removing footprint reports from the qualification requirements, instead relying only on data from half-hourly meters, and the removal of electricity generating credits.

A number of changes are suggested to take into account the UK and EU’s broader approach to energy efficiency and reducing greenhouse-gas (GHG) emissions, including aligning its GHG reporting requirements with that of Defra, and no longer requiring sites covered by the EU emissions trading scheme or a climate change agreement to buy CRC allowances.

The proposals, according to DECC, will cut the administration costs of participating in the scheme by almost two-thirds, saving organisations £330 million by 2030.

“We have listened to businesses' concerns about the CRC and have set out proposals to radically cut down on ‘red tape’ to save businesses money,” announced the energy secretary Ed Davey in launching the consultation on Tuesday (27 March).

However, reaction to DECC’s proposals has not been positive with the manufacturing organisation, the EEF, reiterating its calls for the scheme to be abolished. “[The CRC] is costly and no amount of tinkering with it will ever make it work,” argued Gareth Stace, head of climate and environment.

David Symons, director of WSP Environment & Energy, commented: "Instead of tinkering with CRC rules … the government would do better to really focus on how it can help and encourage businesses to reduce their energy bills.”

A survey of CRC participants released by accountants KPMG this week reveals that the total administrative costs the first year of the scheme reached £97 million, costing participants on average £15,500 and adding 5% to the cost of carbon.

The consultation, which will run until 18 June, was launched as Defra confirmed that ministers had not yet come to a decision as to whether to introduce mandatory GHG reporting for businesses, an initiative which a number of organisation, including the EEF and the CBI, would like to see replace the CRC.


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

Transform articles

A social conscience

With a Taskforce on Inequality and Social-related Financial Disclosures in the pipeline, Beth Knight talks to Chris Seekings about increased recognition of social sustainability

6th June 2024

Read more

While biodiversity net gain is now making inroads, marine net gain is still in its infancy. Ed Walker explores the balance between enabling development and safeguarding our marine environment

6th June 2024

Read more

David Symons, FIEMA, director of sustainability at WSP, and IEMA’s Lesley Wilson, tell Chris Seekings why a growing number of organisations are turning to nature-based solutions to meet their climate goals

6th June 2024

Read more

Sarah Spencer on the clear case for stronger partnerships between farmers and renewable energy developers

6th June 2024

Read more

Groundbreaking legislation on air and noise pollution and measures to tackle growing concerns over disposable vapes provide the focus for Neil Howe’s environmental legislation update

6th June 2024

Read more

A system-level review is needed to deliver a large-scale programme of retrofit for existing buildings. Failure to do so will risk missing net-zero targets, argues Amanda Williams

31st May 2024

Read more

Chris Seekings reports from a webinar helping sustainability professionals to use standards effectively

31st May 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