Carbon Reduction
Carbon Reduction Commitment
The Carbon Reduction Commitment Energy Efficiency Scheme begins with registration during 2010 of all bodies with half hourly electricity meters. Those with recorded use of over 6,000 MWh will have to participate and from 2011 begin purchasing carbon allowances to reflect their total buildings energy use. Initially the cost may be fairly reasonable, but after three years the carbon market will be capped with a rapid escalation of cost.
The intention is to drive emissions reductions and CRC is a 'cap and trade' scheme rewarding those who play the game well and penalising those who do not. Capital Allowances on low energy equipment (ECAs) or on improved insulation or other upgrades of plant and machinery will contribute to making savings. Davis Langdon’s tax team can call on a range of consultancy expertise to assist in developing a CRC strategy starting with our carbon assessor energy data software.