About the Carbon Tax

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The CRC (Carbon Reduction Commitment) Energy Efficiency Scheme is a regulatory incentive which aims to reduce carbon emissions from large public and private sector organisations. As a short term target it aims to reduce carbon dioxide emissions by at least 4 million tonnes per every year until 2020.

The scheme applies to every company or organisation that had a settled half-hourly meter in 2008.

Following the comprehensive spending review in Autumn 2010 the details of the scheme have been reviewed. While some amendments have been actioned to date, further modifications can be expected. However; participants are legally obliged to meet the requirements and rules of the current scheme.

Decisions taken by the government to date include:

  • Omission of recycling payments, resulting in an overall increased cost for participants,
  • Change of sale of carbon alloances for the years 2011/12 and 2012/13 from an advance sale to a retrospective one

The level of participation in the scheme varies depending on the actual consumption of electricity in 2008. For full participation it means the payment of a fee for each tonne of Carbon Dioxide (CO2) emitted – use our Carbon Tax Estimator as an initial guide to how much tax you could be paying.

It is estimated that the business sectors that have been targeted by the this scheme currently generate over 10% of the UK’s CO2 emissions, i.e. approximately 55 Megatonnes of CO2 per annum.