DECC unveils CRC plans

Climate change minister Greg Barker has today (30 June) revealed how the government plans to further streamline the Carbon Reduction Commitment Energy Efficiency scheme (CRC), which he claims is overly complex and bureaucratic.

“I believe the principle of the scheme is right which is why I am proposing to make the CRC simpler while still protecting its strong environmental integrity to cut emissions in large organisations and businesses,” said Barker.

“Energy efficiency is a no brainer. It saves money and cuts carbon. Our proposals will make it easier and simpler for businesses to feel the benefits of using less energy as well as supporting jobs in the energy savings industry.”

The proposals, which will be issued for consultation early next year, include:

• reducing the number of fuels covered by the CRC from 29 to four (electricity, gas, kerosene and diesel);
  
• removing the auctioning of allowances by introducing fixed-price sales, twice a year from 2014 (the start of phase II);
  
• abolishing the need for large organisations to participate in groups;
  
• introducing a “one-step” qualification process;
  
• and exempting from the CRC sites covered by a Climate Change Agreement (CCA) or the EU emissions trading scheme.

Barker has also announced that a consultation on revising CCAs to make such arrangements less burdensome on businesses and more effective until it finishes in 2023 will begin shortly.