As promised in the Budget 2012 statement, the UK government has unveiled proposals for the simplification of the Carbon Reduction Commitment (CRC) efficiency scheme.
The scheme requires organisations using over a certain threshold of energy to report and pay a tax on the amount used, as well as ranking participants on the basis of their actions to improve energy efficiency.
In its original form, the scheme recycled payments from participants purchasing emission allowances to reward those which improved their energy efficiency most. But the scheme was revised to generate revenue for the Treasury to the disapprobation of the business sector.
The scheme has also faced criticism over its complexity and failure to recognise other positive actions of participants, like purchasing or generating green energy.
Now in a bid to woo back the business community, the Coalition is asking for comments on a range of simplifications to the scheme aimed at retaining the potential benefits, which could total carbon savings of 21 MtCO2 by 2027, while reducing bureaucracy.
The simplification of the scheme could save over £330 million by 2030 for the 2000 or so participants, says the government, including £250 million for businesses in reduced administration.
The proposals including shortening the qualification process for the scheme, reducing the number of fuels covered by the scheme from 29 to 4, and cutting the amount of reporting required and the length of time for which records have to be kept.
The changes would also mean that facilities covered by the Climate Change Agreement or EU Emissions Trading System would not have to purchase CRC allowances.
The scheme requires organisations using over a certain threshold of energy to report and pay a tax on the amount used, as well as ranking participants on the basis of their actions to improve energy efficiency.
In its original form, the scheme recycled payments from participants purchasing emission allowances to reward those which improved their energy efficiency most. But the scheme was revised to generate revenue for the Treasury to the disapprobation of the business sector.
The scheme has also faced criticism over its complexity and failure to recognise other positive actions of participants, like purchasing or generating green energy.
Now in a bid to woo back the business community, the Coalition is asking for comments on a range of simplifications to the scheme aimed at retaining the potential benefits, which could total carbon savings of 21 MtCO2 by 2027, while reducing bureaucracy.
The simplification of the scheme could save over £330 million by 2030 for the 2000 or so participants, says the government, including £250 million for businesses in reduced administration.
The proposals including shortening the qualification process for the scheme, reducing the number of fuels covered by the scheme from 29 to 4, and cutting the amount of reporting required and the length of time for which records have to be kept.
The changes would also mean that facilities covered by the Climate Change Agreement or EU Emissions Trading System would not have to purchase CRC allowances.
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