Carbon reduction commitment closer

The UK and Scottish Governments have reported back on a consultation into a scheme to reduce carbon emissions.

Two key changes have been proposed by the UK and Scottish Governments in how a new carbon reduction scheme to reduce emissions from businesses and organisations will be implemented across the country.

The Carbon Reduction commitment is the UK's first mandatory domestic emissions trading scheme, and will involve organisations such as supermarket chains, hotel chains, office-based corporations, government departments and large local authorities. The CRC Energy Efficiency Scheme will deliver emissions reductions cost-effectively by driving energy efficiency, saving participants money and enabling sustainable growth. The response sets out changes being made in the light of views received from stakeholders.

The most important changes are:

• Participants will no longer be required to buy emissions allowances for the first two years in one lump in April 2011,
• Large organisations can now choose to split themselves into smaller groups to participate in the scheme independently.

Stewart Stevenson, Minister for Climate Change, said:

“This new commitment will encourage businesses and organisations to think about the energy they consume and make important decisions about how they operate.

“From 2010, we will be looking to reduce emissions on an annual basis as we work towards reaching the target of 42 per cent reductions in emissions as laid out in the Scottish Government’s world-leading Climate Change Act. We will outline the plans and proposals that we will adopt to set us on a trajectory towards a low-carbon future. This is part of that commitment."