Carbon Reduction Commitment – Important Changes to the CRC!

‘The CRC Energy Efficiency Scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011. Revenues from allowance sales totaling £1 billion a year by 2014-15 will be used to support the public finances, including spending on the environment, rather than recycled to participants. Further decisions on allowance sales are a matter for the Budget process.’

The Bad News – participants will still be required to purchase allowances, but they will not receive any recycled payments.

The Good News – participants have been given a budget to spend on energy efficiency measures over the next 12 months. By scrapping allowances payments in 2011, participants can invest that budget in direct energy-saving measures.

It’s very early days to make any solid decisions on the scant information that was made available in yesterday’s spending review. Before any definite announcements by Government, rumours will no-doubt run rife, but no matter what, it appears that the CRC scheme will not be going away any time soon.

Participants should make use of the budget and time that they’ve been given during the next 12 months, to implement effective energy management programmes that will reduce the cost of CO2 allowances before 2012. If they don’t, it looks likely that they will now have to pay a considerably higher price.

Now is the time to put into action a carbon/energy reduction strategy, look at how you can bring about behavioural change and consider methods to give accurate energy measurement of where your organisation is today and develop an action plan to improve and provide ongoing monitoring.