Chancellor’s ‘simpler CRC’ pledge kicks off

DECC has announced plans to simplify the Carbon Reduction Commitment (CRC) scheme to save UK businesses around £330 million up to 2030. This follows the Chancellor’s pledge last week to […]

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By Priyanka Shrestha

DECC has announced plans to simplify the Carbon Reduction Commitment (CRC) scheme to save UK businesses around £330 million up to 2030. This follows the Chancellor’s pledge last week to replace the CRC with an alternative environment tax if it is not simplified.

The new proposals are aimed at cutting the administrative costs of joining the scheme by almost two-thirds. The CRC is a mandatory scheme for large public and private sector organisations to report and pay tax on their energy usage. It ranks businesses in a performance table meant to give them the incentive to improve their energy efficiency.

Under the proposals, the Government is reducing the amount of reporting required by businesses, shortening the CRC qualification process and cutting the length of time participants will have to keep records. The CRC is expected to deliver carbon savings of 21 metric tonnes of carbon dioxide (MtCO2) by 2020.

Energy Secretary Ed Davey said: “The benefits of the scheme are clear. It will deliver substantial carbon savings helping us to meet carbon budgets and it encourages businesses to take action to improve their energy efficiency.”

A formal consultation will run for twelve weeks starting today and the Government will make changes to the proposals by April next year.