Overview

The Department of Energy and Climate Change (DECC) has released its first
meaningful statement on how the current CRC scheme might be changed to make it more workable for industry. This briefing from Travers Smith outlines the key proposals and how the scheme is likely to evolve.

Among the key points the government has indicated that the CRC will not be scrapped and replaced by a straight carbon tax. Rules on organisational structures and the qualification process will be simplified.

Additionally, there will be no auctioning of allowances in Phase 2 – instead there will be two fixed price sales each year, an upfront sale and a second retrospective sale at a higher price.