All Change for CRC . . .

October 25, 2010
In its recent decision to reform the CRC Energy Efficiency Scheme, the UK Government has, against the recommendations of the Climate Change Committee, opted to abolish recycling payments to Scheme participants, effectively making the cost of purchasing allowances a new green tax. The Government has also delayed the first sale of allowances for one year. Whilst the decision has obvious revenue benefits for the Government, a question mark now hangs above how the Scheme will incentivise participants to take measures to improve energy efficiency going forwards. This update examines the Government’s decision in the context of the advice given to it by the Committee.