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UK Carbon Tax for Hotels
Thursday, 11 Apr, 2010
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Ed Milliband UK Climate Supremo
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Hotels and other large energy users will be audited as to their energy consumption and will pay an initial extra tax of UK£12 per tonne of C02 as opposed to the 8 April EU-ETS market trading rate of €13.50 (£11.83)
The legislation is passed, the system is now place and in operation as from 1st April 2010. The tax will raise at least £1bn a year within the next ten years.
The Department of Energy and Climate Change (DECC) has now launched the Carbon Reduction Commitment Energy Efficiency Scheme, which is said to help public and private sector organisations cut their carbon emissions.
DECC claims the introduction of the scheme, alongside the launch of the Feed-in Tariff (FiT), will see homes and businesses contributing to UK emissions reductions of at least 34% on 1990 levels by 2020.
“From today the rewards for businesses and householders who act to cut their carbon emissions really start to pay off” Ed Miliband,
The tax aims to help change behaviour and will require large public and private sector organisations like supermarkets, hotels, hospitals, local authorities and central government departments, to improve their energy efficiency and pay a carbon tax.
Participants’ performance will be published in the form of a league table. All revenue raised from the sale of emissions allowances will be recycled back to participants with those who have increased efficiency receiving more of this money.
Organisations have until September to register. DECC projects that by 2020, the scheme will have delivered emissions savings of at least 4.4 million tonnes of CO2 per year.
Commenting on the launch of the CRC scheme, as well as the FiT, secretary of state for energy and climate change, Ed Miliband, said: "From today the rewards for businesses and householders who act to cut their carbon emissions really start to pay off. It’s no longer simply about doing the right thing for the environment, it’s now a sure-fire financial investment.
"The UK is leading the way in tackling climate change. Organisations and householders can play a central role in leading the move to a low carbon economy whilst saving money on their energy bills."
The Environment Agency will be running the scheme and it notes that more than 20,000 organisations will have to register with it by the end of September this year. Around 5,000 of these organisations – those that used at least 6,000MWh of half hourly metered electricity in 2008 – will have to report their emissions and, from 2011, buy allowances for every tonne of CO2 they emit.
During the introductory phase in 2011 and 2012, allowances will be sold at a fixed price of £12 per tonne of CO2.
A further 15,000 organisations that use less than 6,000MWh, but still have at least one half hourly electricity meter, will be obliged to register and declare their electricity use.
Tony Grayling, head of climate change and sustainable development at the Environment Agency, said: "The CRC Energy Efficiency Scheme is an opportunity for organisations to do their bit for the planet and save money.
"The league table is a very public judgement on how seriously you take your environmental responsibilities. If organisations don’t take up the challenge, there is a risk to their reputation and their pockets." He added that carbon reduction needn’t be complicated or expensive, claiming there are simple and inexpensive steps every organisation can take to cut their energy consumption – from motion sensors for lighting in offices to higher efficiency motors in manufacturing.
Reacting to the start of the scheme today, the trade association for the British retail industry – the British Retail Consortium (BRC) – said retailing is well placed to deal with the new environmental regulations – as these build on action retailers are already delivering to tackle climate change.
Commenting on the launch of the scheme, Stephen Robertson, British Retail Consortium director general, said: "The BRC and its members have actively been involved in the Carbon Reduction Commitment consultation, helping to ensure better working arrangements than were originally proposed. The move to use the first year of the scheme as a reporting period before having to buy carbon allowances will halve retailers’ costs next spring, increasing their ability to maintain and create jobs.
"But we remain concerned that an adequate solution hasn’t been found to ensure the costs and benefits of achieving energy efficiencies are shared fairly between landlords and their retail tenants. We work best when we work together, with big carbon reductions already achieved in retail transport operations by co-operating with suppliers and hauliers. The BRC and its members will continue talking to the government and landlords’ organisations to find a mutually beneficial resolution."
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