Do you think the CRC scheme will be scrapped?

In announcing the 2012 budget at the end of March, George Osborne indicated that the CRC scheme could be scrapped. The government has launched a last attempt to simplify the controversial Carbon Reduction Commitment (CRC). The proposals could cut administrative costs by up to £330m for the 2,000 organisations participating in the scheme. A 12-week consultation has been launched by energy secretary Ed Davey and includes proposals to reduce the amount of reporting required by businesses and the length of time participants will need to keep records. If this doesn’t work the scheme could be scrapped and replaced with another environmental tax. The Institute of Environmental Management and Assessment (IEMA) called on the government to make a decision on the future of the CRC before autumn as CRC participant organisations will have to start buying allowances. At present we know these allowances are £12 per tonne of carbon dioxide, but we don’t know the potential costs beyond March 2013, meaning organisations will find it difficult to plan and budget for the future. At BCC, we are only too aware of the administrative burden this scheme has on organisations. However, one thing that the scheme has done is make organisations realise how much energy they actually use and how much this costs. If you know how much you use and monitor consumption patterns you can eliminate wastage thus reducing costs which in this economic climate is crucial. Clearyl though this is something that can be done without participating in the scheme. What do you think will happen with the scheme? Or more importantly, what do you want to happen?   Related links: DECC Environment Agency