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CSR Part 2: the knock-on effects

22 October 2010

Major retailers, large businesses and major public sector organisations such as local authorities were unexpectedly hit a £3.5bn carbon tax in the CSR.

The Carbon Reduction Commitment Energy Efficiency Scheme, (CRC), which came into force on April 1, was to have created a financial incentive for organisations to cut carbon, as good performers at the top of a public league table would benefit from the “recycling” of the funds paid to buy emissions allowances.

Instead, the money raised will now be held by the government, in effect creating a carbon tax.

Liz Peace, chief executive of the British Property Federation, told Building: “The coalition said they wanted to simplify the complexities of the CRC and they have certainly found a novel way to do that. This will not however ‘remove the burden on businesses’ as they claim, but ensure that the CRC will cost the wider business community almost £3.5bn more than it would have.”

In other news, Construction News, Building and the Construction Enquirer website have reported that:

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