The much loathed Carbon Reduction Commitment (CRC) could be replaced by an increase in the Climate Change Levy paid by large energy users. That’s the opinion of an energy broker, who thinks the gap in revenue generated for the Treasury could be made up elsewhere, without further upsetting the energy sector.

Tom Woolley from the Energy Brokers said: “Ministers could do away with CRC and replace the revenue by upping the Climate Change Levy, whilst the introduction of mandatory carbon reporting rules would help keep the reputational aspect of the current scheme alive.”

CRC is a mandatory tax, introduced in April 2010, which aims to target large emitters. Due to a severe backlash from business, the scheme has been put under review by Government and could be scrapped unless the administrative costs can be reduced.

The CRC is expected to raise around £740 million for the Treasury in 2013/14, the Energy Brokers claim, but an alternative green tax is more than likely on the cards: “It is perhaps of little coincidence that the Government also put off a decision recently on whether to make it a legal requirement for all businesses to report on their greenhouse gas emissions,” Mr Wooley added.