Government proposals unveiled last week (June 30) to simplify the Carbon Reduction Commitment energy efficiency scheme are a move in the right direction, according to the Environmental Services Association.
But, the trade body for the waste sector said it still had outstanding concerns over the disproportionate impact that the proposed scheme, which is known as the CRC and will involve businesses buying allowances to cover their carbon emissions, could have on recycling facilities.
Under the CRC, from April 2012 businesses and organisations over a certain size will be expected to purchase allowances from the government to cover their carbon emissions, as well as measuring and reporting their carbon emissions. The initiative aims to reduce carbon emissions from non-energy intensive sectors of industry.
The plans announced by climate change minister Greg Barker aim to reduce the administrative burden of the scheme on businesses, allow greater flexibility for businesses on how they take part and reduce the overlap between the CRCF and other government climate change policies.
Notably, they reduce the number of fuels that businesses must report on emissions from, down from 29 to just four electricity, gas, kerosene and diesel for heating.
This move in particular was welcomed by the Environmental Services Association, whose director of policy, Matthew Farrow said it would make it easier for obligated waste businesses to administer the CRC.
ESA is pleased that the Government is at least trying to listen to industry and address some of its concerns, he told letsrecycle.com. The announcement on simplification is a move in the right direction, and the focus on a core range of fuels will make the scheme easier to administer.
Concerns
But, the ESA stressed its concerns over how the CRC will impact on waste facilities remain. In particular, the association believes the system should be reformed so materials recycling facilities (MRFs) can use the carbon savings they achieve through recycling to offset their energy use (see letsrecycle.com story).
The ESA has also claimed the scheme will work against older energy-from-waste facilities which receive the old Non Fossil Fuel Obligation subsidy rather than the newer Renewables Obligation Certificate.
The CRC assumes firms can use ROCs income to offset the cost of CRC allowances, but, according to the ESA, facilities which cant claim ROCs will have their costs increased unless they are able to access an alternative known as Energy Generating Credits.
Commenting on this, Mr Farrow said: Todays announcement also failed to address the anomaly whereby facilities operating under a Non-Fossil Fuel Obligation are denied the ability to use Energy Generating Credits while at the same time not benefiting from ROC income.
Consultation
The government plans to run a formal consultation on the proposals to simplify the scheme early next year, but last week asked for informal comments on the plans which are outlined in a document entitled Simplifying the CRC Energy Efficiency Scheme: Next steps.
Outlining the governments approach, Mr Barker said: I believe the principle of the scheme is right which is why I am proposing to make the CRC simpler while still protecting its strong environmental integrity to cut emissions in large organisations and businesses.
He added: Our proposals will make it easier and simpler for businesses to feel the benefits of using less energy as well as supporting jobs in the energy savings industry.
CBI
However, the nature of the current proposals for the CRC also came under fire from the Confederation of British Industry. Rhian Kelly, Director for business environment, for the organisation, said: Were disappointed the Government has not gone further to repair the damage caused by its decision to remove the incentive behind the Carbon Reduction Commitment.
While it is right to recognise that there are problems with the CRC in its current form, the Governments proposals amount to tinkering around the edges.
He added: It should either reinstate the revenue recycling element, or scrap the CRC altogether and look at other ways of increasing energy efficiency among businesses.
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