The CRC Energy Efficiency Scheme is looking like a carbon tax

As expected in the UK today, HM Treasury announced massive cuts in the public spending review. What was less expected was a press release about the DECC spending review which contained the following short statement: “Revenue raised from the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme will be used to support the public finances (including spending on the environment), rather than recycled to participants.”

This could have significant implications for the scheme, both in terms of its acceptance within the business community and the expected impact of the legislation as a whole. On the face of it, this statement from DECC looks like it is increasing the cost to businesses of participation in the CRC EES. Without a recycled payment there will be less incentive for organizations to implement early action measures and perform well in the league table, although it appears that the reputational risk of the league table remains. It does mean that carbon emissions will still have a cost and it still means that those organizations pursuing energy management programmes will continue to reduce their operating costs. One could jump to other conclusions, but we really need to see more information from the Government about the future of the scheme.

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Sonny Masero

Sonny Masero recently joined CA as a VP to drive the ecoSoftware business in EMEA. He came from the climate change and sustainability specialist Camco, where he was UK Managing Director. He has worked in the environmental market in Europe for the last 13 years and is known for his expertise of sustainable business and sustainable project development, with specific knowledge of greenhouse gas emissions assessment, carbon management and sustainability management. Recently Sonny has advised companies like SAB Miller, Invensys Rail and Crest Nicholson. Sonny trained in engineering and business at City University in London, and has a Masters in Sustainable Development through the Forum for the Future Scholarship Programme. He is a Fellow of the Royal Society of Arts, Manufacture & Commerce (RSA). Within the sustainability industry he sits on the Brand Emissions Advisory Panel, the Sustain' Editorial Board and will shortly be starting a column in Sustainable Business (SB) magazine on the diffusion of sustainable innovation. Sonny is also a Director of not-for-profit organization, Dynamic Demand, which has been promoting smart grid frequency control demand management in the UK for the past few years. For more information see his LinkedIn profile -

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