The CRC scheme is the abbreviated name for the “Carbon Reduction Commitment Energy Efficiency Scheme” – which can now be changed to “TAX”.
It was intended to help reduce the Country’s carbon footprint in line with the Government’s emissions reduction targets set out in the Climate Change Act.
The scheme is administered by the Environment Agency and participants are required to monitor and measure energy usage, purchase and surrender allowances to cover emissions and submit accurate reports on actual emissions.
This was all well and good. It was a bit of a carrot and stick – good energy performance was to be rewarded with a ‘carbon credit’. This was to allow businesses to implement further energy-saving measures. It was sold to the business community as being revenue neutral. The heavy users would be subsidising (or rewarding) those well behaved and low carbon producing companies.
But, the Government have spotted an opportunity here. They have decided (and this is in the small-print) that there are going to be a couple of changes to the scheme.
Firstly, the initial allowances will now be take place in 2012, rather than 2011
But much more sneakily, the money generated from the sale (expected to be £1 billion by 2014-15) will not now be recycled to participants to invest in further energy saving measures, but will be retained by the Government.
But even better was the rather lame excuse that the reason for not ploughing the money raised into reducing the carbon emission further was that it would simplify the complexities of the scheme and reduce the burden on businesses. So they introduce a complicated scheme and then to make it simpler decide to keep all of the wonga they collect. Genius.
It is simpler though. They just collect and don’t have to think how to give some of it back.
It’s good to see that this Government are taking this Sustainable stuff seriously. Seriously enough to realise there’s a billion quid they can get their grubby paws on! I presume that they don’t think they need to encourage business – so the carrot ahas gone and they just have a great big stick.
