The government’s decision not to recycle the revenues raised by the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme back to participating companies has created a direct carbon tax on businesses, says sustainability and independent planning consultancy DPP.

Sunil Shah, a partner and head of DPP’s sustainability practice said: “This has effectively become a direct carbon tax on business.  Yet being taxed at £12 per tonne is unlikely to be a sufficient penalty to change behaviour.  It also raises the question for the need of the league tables praising and shaming participating organisations.”

He adds: “As public sector bodies have to comply, effectively government money will be returned back to itself - it would be simpler to provide a direct funding provision similar to the Green Deal for these groups and thereby avoiding the ownership and energy consumption issues associated with schools and local authorities.”

The original concept behind the CRC of challenging the reputation of  organisations who fail to make energy saving measures was, Sunil believes, the absolutely right approach in that it would have changed behaviour.

“By tinkering with the CRC there is a danger that this aspect will be lost and that would be a shame,” says Sunil. 

“If the government wishes to go down the direct taxation route it needs to dramatically increase the per tonne charge.  The Committee on Climate Change through its own research suggests a figure in the region of €100 per tonne would be needed to decarbonise the economy.”

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About DPP
DPP is a top ten independent town planning consultancy providing strategic advice to the a range of clients. DPP's chartered planners, sustainability, heritage and design experts work with developers, landowners, business operators and public sector bodies, offering services relating to the development and use of land. The firm operates in all development sectors with a particular presence in residential, retail, regeneration, mixed uses, business and commercial.  DPP is committed to maintaining the qualities that separate us from our competitors, as well as continuing to enhance our established reputation for providing high quality, efficient and cost-effective services while helping clients reach their planning and development objectives.

Clients of DPP include Bellway Homes Ltd, Caffé Nero, Centros, Domino's Pizza, English Heritage, Invensys, Liberty Properties, Liverpool Land Development Company, Mercian Developments, The Ministry of Justice, Shell International, Taylor Wimpey, Tesco, Unilever Pension Fund Trustees, United Utilities, the Watkin Jones Group and the Welsh Assembly Government.

Contact
Ceri Edwards, Redwood Consulting
Tel: 020 7828 5553
Email: ceri@redwoodconsulting.co.uk