In the chancellor’s Autumn Statement it was announced that the future of the Carbon Reduction Commitment Energy Efficiency (CRC) scheme will remain undecided until after the next general election in 2016.
However, it was declared that the performance league table will be scrapped and George Osborne has pledged to remove the tax element of the CRC as soon as possible.
This statement has naturally attracted criticism from a number of environmental professionals, including Martin Baxter, the policy director at IEMA: "The chancellor’s statement on the CRC fails the business test for long-term policy certainty."
With many companies wrestling with the challenge of developing a Carbon Management Plan to address GHG emission targets, the lack of a consistent policy framework has the potential to undermine the investment case on many low-carbon initiatives.
Osborne’s intention to prioritise the removal of the CRC’s tax element may be considered by some as welcome news in tough economic times. It is worth noting that this statement comes with a caveat – “when the public finances allow.”
As austerity measures are forced to extend to 2018 it would not be surprising if the chancellor failed to honour this pledge anytime soon. Especially when considering the sale of CRC allowances for 2011/12 emissions has already generated a considerable £657 million* for the Treasury.
Carbon management should therefore remain essential practise for those looking to minimise tax liability.
*This figure is provided by the Environment Agency and accounts for 93% of the CRC participants.




