Thursday, 28 October 2010

Co-op hits out at Spending Review changes to carbon reduction scheme

The Co-operative Group has expressed disappointment over the changes to the
Carbon Reduction Commitment (CRC) energy efficiency scheme, which it said
has effectively turned into a new business tax.

Under the original scheme, participating organisations have to buy
allowances based on their level of electricity usage, with all revenue
raised to be recycled to businesses. Those who performed the best in
increasing energy efficiency would have received a higher share of this

However, in last week's Spending Review, the government said it would be
taking these revenues "to support the public finances". In addition, the
first allowance sales for 2011-12 emissions will now take place in 2012
rather than 2011.

"Revenues from allowance sales totalling £1 billion a year by 2014-15 will
be used to support the public finances, including spending on the
environment, rather than recycled to participants. Further decisions on
allowance sales are a matter for the Budget process," the government said.

The Co-operative Group said it felt it was being penalised as it had planned
to reinvest the revenue into the business.

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