Written Ministerial Statement by Hilary Benn - Report on the Public Consultation on Implementation Proposals for the Carbon Reduction Commitment - 27 March 2008
The Secretary of State for Environment, Food and Rural Affairs (Hilary Benn)
In June last year, the Government launched a fifteen-week consultation on proposals for the CRC, inviting views on how the UK Government and Devolved Administrations should implement the UK CRC. The overall response of stakeholders to the consultation document is positive. Stakeholders support the adoption of CRC as a UK-wide scheme and tended to agree with most elements of Government’s proposed approach.
The CRC, scheduled to begin operation in 2010, is a mandatory emissions trading scheme that will cover around 5000 public and private organisations, including government departments, retailers, banks, water companies, hotel chains and local authorities. Combined, these organisations account for around 10 per cent of the UK economy’s CO2 emissions.
There will be an introductory three-year phase in which Government is minded that allowances will be sold at a fixed price of £12/tCO2. In the second phase, starting in 2013, allowances will be auctioned. The revenue from both sales will be recycled to participants related to their performance in reducing emissions compared to others in the scheme.
The UK is committed to meeting carbon reduction targets and to policies that will deliver emissions savings. This new scheme, announced in the Energy White Paper, together with the provisions of the Energy Performance of Buildings Directive, will have a significant impact on reducing UK CO2 emissions.
The Climate Change Bill, currently going through Parliament, will provide the legal basis for the scheme. A further consultation on detailed regulations will take place in the summer of 2008.
Copies of the Report will be placed in the Libraries of the House.
Page published: 27 March 2008