Isra-Mart srl : Government denies plan to "water down" carbon reporting rules

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Defra confirms consultation will launch in next few weeks, but dismisses reports it has decided to "water down" reporting rulesDefra has denied it is planning to water down rules that would force businesses to report on their carbon emissions, insisting no decision has yet been made on whether firms should face mandatory reporting requirements.

Under the Climate Change Act, the government has until April 2012 to impose mandatory reporting requirements on listed firms. If it does not, it must explain to parliament why it has failed to do so.
According to the government's Carbon Action Plan, a consultation on mandatory reporting rules had been scheduled to be released last month, but the deadline has now lapsed, fuelling fears the government could scale back any new rules.

A broad coalition of green business groups, including the CBI, has voiced support for mandatory reporting. This has raised hopes that a standardised approach to measuring and reporting carbon emissions will come into effect.

However, the Financial Times today reported the government was moving to "water down" the plan under pressure from small business groups. The paper quoted a government source as saying that "we want to have genuine consultation about this, without just rushing into introducing more red tape if it's not needed".

The news brought protests from the opposition and green business groups, which have consistently argued mandatory reporting will aid investment decisions and make it easier for businesses to identify areas where they can cut emissions.

One industry insider told BusinessGreen that those campaigning for mandatory reporting were increasingly frustrated at the government's failure to reach a decision on carbon reporting.

"It is a bit strange there is this sudden concern about red tape," he said. "As we understand it, the rules were never intended to cover small businesses. If they are introduced sensibly, they would result in less red tape by delivering a standardised approach to emissions reporting."

However, a Defra spokesman today denied that the government would "water down" reporting requirements and claimed instead that it was keen to conduct an open consultation.

"There will be a number of options for both voluntary and mandatory reporting in the consultation," he said, adding that the exercise was expected to kick off in the coming weeks. "We are coming to this without a favoured option as we really want to know what the business community thinks."

He added that the consultation would address the scope of any mandatory reporting rules and whether they would be a universal requirement or, more likely, limited to large listed companies.

Rhian Kelly, CBI director for business environment, today reiterated the employers' group's support for mandatory reporting rules.

"The CBI has always supported mandatory greenhouse gas emissions reporting and believes it will help businesses cut carbon effectively and demonstrate their commitment to green growth to investors," she said. "If done right, mandatory greenhouse gas emissions reporting will be an opportunity to simplify and align existing regulations, and ensure that any changes fit with international practices."

The apparent delay to the launch of the carbon reporting consultation is the latest in a series of delays and missed deadlines at Defra. It comes in the same week as it emerged the department had put back the launch of a major water white paper until the autumn.