UK advisory body recommends Carbon Reduction Commitment redesign

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The Committee on Climate Change (CCC) has made a recommendation to the UK
government to re-design the recently-introduced Carbon Reduction Commitment
(CRC) energy efficiency scheme in order to reduce its complexity before
starting its second phase, which will last from 2013 to 2017.

Under the CRC scheme, large public and private sector organisations must buy
allowances to cover their emissions produced from electricity and heat
usage.

Following a recent study on the initiative, the CCC has made the
recommendation that the scheme would benefit from being simplified.

The scheme is planned to set a cap from 2013 on emissions with a fixed
number of allowances made available to organisations through an auction
system.

However, the committee’s analysis suggests that the already complex scheme
would become increasingly so if a cap and auction system were to be
introduced, which it said has no apparent benefits.

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