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The CRC Energy Efficiency Scheme – advice to Government on the second phase

The CRC was introduced in April 2010 and specifically targets the emissions associated with electricity and heat use in large public and private sector organisations, and covers around 10% of the UK’s greenhouse gas emissions.

In January 2010, the Committee was asked by Government to provide advice on the level of the cap for the second phase.

This report sets out our advice on the setting of the cap, and our recommendations on some aspects of the scheme’s design.


Latest reaction to the CCC’s report

Dr Neil Bentley, CBI Director for Business Environment, said: “An effective CRC would encourage businesses to cut their energy use, but in reality many firms’ experiences of complying with the scheme have been slow and arduous. It is a sad state of affairs that the current CRC risks distracting organisations from the real goal of energy efficiency.   “We therefore applaud the Committee on Climate Change’s common-sense recommendations such as not introducing a trading element from 2013. But the Government must not wait, and must act now to simplify a system hamstrung by complexity, and enhance the incentive to cut emissions.  A good start would be to guarantee that the league table accurately reflects and rewards best efforts to improve energy efficiency.”

Minister for Energy and Climate Change, Greg Barker said: “My Department asked the Committee on Climate Change to provide advice on the CRC Scheme and today I welcome their response. I have made it clear before now that I want to simplify the bureaucracy of the CRC scheme that the Coalition Government inherited. Today’s report will help inform our thinking on setting the cap for CRC and will feed into our work on simplification of the scheme.  In the meantime, I continue to urge businesses to register by the 30th September deadline”

Rowland Hill, Sustainability Manager at Marks & Spencer said: “We welcome the Committee on Climate Change’s report. We believe that the CRCEE scheme will help to raise the importance of energy efficiency and provide a long term framework for improvement in both private and public sectors. We do, however, have concerns about how the league table aspect of the scheme could compromise overall cost efficiency”.