London, 9th May 2012 – On the 3rd May, Jones Lang LaSalle hosted a lively debate with the Department of Energy and Climate Change (DECC) on the future of carbon reduction policy on behalf of the Major Energy Users Council.
The meeting formed part of a regular exchange of views allowing DECC officials to outline their current thinking and to receive feedback from MEUC member organisations who between them account for approximately 30 per cent of the tax payable under the CRC Energy Efficiency Scheme.
DECC reconfirmed their commitment to the CRC outlining ways in which they believe modifications will reduce the cost of compliance by two-thirds. Subject to consultation, the alternative is to abandon the scheme in favour of an environmental tax which is likely to be collected through an increase in the Climate Change Levy. DECC is to hold stakeholder briefings on their changes to the CRC in Manchester and London during May.
Delegates also heard from DECC on progress of their Electricity Demand Reduction assessment. This ground-breaking exercise has been designed to put customers’ ability to reduce power consumption under the microscope and to identify what incentives would need to be put in place to avoid unnecessary investment in new generation sources. Initial findings suggest that power demand savings could reach 38 per cent of the current total load by 2030.
Contributions and questions came from over 40 members of the MEUC from the retail, industrial, commercial and public sectors with DECC being left in no doubt that CRC continues to prove one of the most controversial schemes of recent years particularly since it was changed by the Treasury from an investment incentive scheme into an environmental tax.
Abigail Dean, Associate Director, Upstream Sustainability Services at Jones Lang LaSalle
commented: ‘The event was a great opportunity to hear the views of those most directly impacted by the legislation. The CRC has not been popular but it has certainly increased the profile of carbon monitoring and reporting. If it is to be scrapped, it is essential that any replacement includes an emphasis on carbon monitoring. An increase in tax alone is unlikely to lead to significant energy efficiency gains