What next for the Carbon Reduction Commitment?

Overview

Executives participating in the Carbon Reduction Commitment (CRC) scheme are divided on the effectiveness of the scheme and the extent to which it should be reformed.

That is the core conclusion of our online survey of over 100 executives responsible for their organisation's compliance with the CRC, which revealed both a broad agreement that the scheme imposes too heavy an administrative burden, and an acknowledgement that it has raised awareness of environmental issues, led to improved emissions reporting, and driven some investment in energy efficiency measures.

Key statistics:

• Over 70 per cent of respondents perceive the scheme as imposing a high administrative burden.


• Over 90 per cent of senior executives are aware of the scheme.


• 64-70 per cent of respondents have taken concrete steps to improve energy use monitoring and energy efficiency following the launch of the CRC.


• A majority of respondents insist steps would have been taken to enhance energy efficiency regardless of the introduction of the CRC.


• Four out of five respondents insist the publication of the CRC league table had no impact on their organisation's plans.


• Over 60 per cent cite the financial impact of any reformed CRC or replacement carbon tax as the most effective driver for investment in energy efficiency.

This white paper recommends that policymakers focus proposed reforms of the CRC on reducing the scheme's administrative burden and removing the league table element. It also stresses that any reforms to the CRC or introduction of a replacement scheme should not water down the financial impact of the schemes emissions levies, which, despite some business complaints to the contrary, is incentivising investment in energy efficiency and leading to an increased focus on emissions reduction.