Originally published March 21, 2012
Keywords: CRC, green tax, emissions trading scheme
Breaking news from the UK Parliament: the Chancellor, George
Osborne, is currently delivering his Budget speech in the House of
Commons.
He has just made a key announcement, which will affect a large
number of our clients: he has said that unless significant savings
can be made in the administration costs for businesses of complying
with the CRC, he will bring forward proposals in the Autumn to
replace the CRC with a green tax.
Launched in 2010, the CRC is a mandatory emissions trading scheme
for large non-energy intensive organisations and is one of the
UK's flagship green schemes.
Our view: without primary legislation, it's highly unlikely
that the Chancellor will be able to reduce the costs of the CRC.
That means – and this will be regarded as good news by
many – it looks increasingly likely that the CRC is going
to be abolished. Attention will then focus on its replacement: a
new green tax.
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