CRC simplified to reduce cost for business
Proposals to simplify the CRC Energy Efficiency Scheme will save businesses millions of pounds, according to Edward Davey, Secretary of State for Energy & Climate Change. He said, ‘We have listened to businesses’ concerns about the CRC and have set out proposals to radically cut down on “red tape” to save businesses money. The benefits of the scheme are clear, though. It will deliver substantial carbon savings to help us meet carbon budgets, and it encourages businesses to take action to improve their energy efficiency.’
Participants in the scheme, which is expected to achieve CO2 savings of 21 Mt by 2027, will see their administrative costs cut by almost two-thirds, amounting to about £330 million of savings by 2030.
The proposals are aimed at retaining the energy-saving and reputational benefits of the CRC while reducing the bureaucracy of taking part.
Among the proposals are a shortening of the CRC qualification process and reducing the number of fuels covered from 29 to four. The amount of reporting required by businesses will be reduced, as will the length of time participants will have to keep records.
New emissions factors will be adopted for the CRC to align it with the reporting processes for greenhouse gases.
The detailed metrics of the Performance League Table will be removed from legislation and placed in Government guidance.
The formal consultation ends in mid-June 2012, and the Government will amend the CRC legislation by April 2013.