UK Treasury launches consultation into business energy efficiency tax policy
The Treasury has revealed plans to create a new energy efficiency tax system where a single business or organisation faces one tax and one reporting scheme, a news report suggests.
As part of these plans, the government will abolish the CRC (Carbon Reduction Commitment), the scheme in which large energy users in the public and private sectors are required to buy allowances for every tonne of carbon they emit.
The policy landscape has been criticised by a number of organisations over its complexity and for diverting resources away from on-the-ground delivery of energy efficiency improvements. The UK Green Building Council (UK GBC) was one of the first organizations to answer the Treasury’s consultation.
Richard Griffiths, Senior Policy Advisor at the UK Green Building Council, said: “Moving to a position where organisations are faced with just one key reporting scheme should help to free up organisations’ resources and allow them to focus on delivering energy savings, rather than administration. Likewise, rationalising the tax regime could provide a clearer spur for action, and help to kick-start commercial retrofit activity after a few relatively flat years.
“But neither of these things will, alone, drive the scale of change that we need to reduce emissions from our buildings. To do that, we need new incentives that significantly strengthen the case for businesses to not only identify energy saving opportunities but put them into action, and so it’s encouraging to hear that Government is open to new ideas in this area, especially in the light of recent cuts to support for renewables.”
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