UK Government Hits Businesses With Carbon Tax

Published: 28 October 2010

5 pages

Executive Summary

The UK government announced that HM Treasury will retain 100% of funds from sales of carbon emissions allowances sold by the government to between 3,000 and 5,000 private sector and public sector organizations covered by the Carbon Reduction Commitment (CRC). Participants in the CRC must pay for their allowances in April 2012 to cover the compliance year that begins April 2011. This radical policy change imposes a carbon tax equivalent to a 9% to 11% increase in electricity prices. The new policy will require organizations to strengthen their energy management team, take a more strategic view of carbon reduction, accelerate investments in carbon and energy data management and get more involvement from the CFO in energy efficiency investments.

TABLE OF CONTENTS

CRC TAX ADDS URGENCY TO ENERGY EFFICIENCY INVESTMENTS
Changes To The CRC Perpetuate Regulatory Uncertainty
CRC Tax Requires A More Strategic Approach To Carbon And Energy Efficiency

COMPANIES MENTIONED

Arriva Group, Bristol Water, British Property Federation, CarbonSystems, Carbon Trust, CA Technologies, Department of Energy and Climate Change, Drivers Jonas Deloitte, Environmental Agency, Forth Ports, Hara, HM Treasury, Jones Lang LaSalle, Major Energy Users’ Council, Marks & Spencer, ProLogis, Segro, Sympliciti, Tesco, Verisae, Wilbury Stratton, Woking Borough Council