Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

CRC: Formal consultation begins

The Government has begun formal consultation on its plans to simplify the Carbon Reduction Commitment (CRC) scheme.

We intend to participate in the 12-week consultation, which will end mid-June.

The Department for Energy and Climate Change says the package proposed is aimed at retaining the energy-saving and reputational benefits of the CRC, whilst reducing the bureaucracy of taking part.

Secretary of State Edward Davey 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 helping us to meet carbon budgets, and it encourages businesses to take action to improve their energy efficiency.”

The simplification package will include:

  • A shortening of the CRC qualification process
  • Reducing the number of fuels covered by CRC from 29 to 4
  • Reducing the amount of reporting required by businesses
  • Reducing the length of time participants will have to keep records
  • Removing the requirement on facilities covered by Climate Change Agreement or EU Emissions Trading System installations to purchase CRC allowances
  • Adopting new emissions factors for the CRC which will align it with Greenhouse Gas reporting processes
  • Removing the detailed metrics of the Performance League Table from legislation and placing them in government guidance.

DECC says participants will see their administrative costs cut by almost two-thirds, equating to around £330 million of savings up to 2030.

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