Isra-Mart srl : Our carbon scheme is untenable

www.isra-mart.com

Isra-Mart srl news:

THE Carbon Reduction Commitment Energy Efficiency Scheme (CRC) was launched in April 2010 as a carbon emissions reporting and pricing scheme for organisations using more than 6,000mwh per year of electricity (equivalent to an annual electricity bill of about £500,000).

The aim of the scheme was to reduce UK carbon emissions by focusing on non-energy intensive sectors in the UK, improving end-user energy efficiency in commercial buildings.

Despite the potential for savings, the scheme is viewed by CBI members, CRC participants and stakeholders as being overly complex and burdensome.

In October’s spending review, the Government decided to remove the revenue-recycling element, which has undermined the original purpose of the scheme – encouraging organisations to cut emissions.

We are at a crossroads on the CRC as the scheme is untenable in its current form. The potential for carbon reduction in commercial property through action on energy efficiency is huge and will save business money.

But there is a question mark over whether the scheme, in light of recent changes, can deliver this outcome.

The combination of complex compliance procedures and the removal of the revenue recycling incentive has undermined the potential effectiveness of the scheme in the mind of business.

The Government must apply its better regulation approach to the climate change policy landscape and make the CRC work. Without reform the Government stands to lose business buy-in on this vital agenda.

Recently, the CBI has reiterated its call for the incentive behind the Carbon Reduction Commitment to be restored.

We now have a carbon reduction scheme that doesn’t encourage companies to reduce carbon emissions, and actually adds to the cost of doing business.

Without a proper incentive, the scheme lacks credibility and has lost businesses’ trust.