Government has launched a consultation with industry to help cut red tape from the EU Emissions Trading System. The plans intend to replace 13 sets of regulation with just one by January 2013, when the third phase of the ETS begins.
This is the first major change proposed to legislation by DECC as a result of the ‘red tape challenge’ conducted last year.
DECC also plans to offer small emitters and hospitals the opportunity to ‘opt out’ from 2013 in an alternative scheme to address the disproportionately higher administrative burden faced by these installations per tonne of CO2 emitted. Currently administrative costs for small emitters are estimated at over £1/tCO2, while large emitter costs are estimated to be £0.04/tCO2.
Greg Barker, Minister of State for Climate Change said: “Under the proposals smaller businesses, which experience higher costs from complying with the current regulations, will also be able to opt out of the system from 2013”.