It will mean that participants in the CRC scheme will be required to surrender allowances for the final time in October 2019 according the the Budget 2016 announcement.
Announcing the plans during the Budget 2016, Chancellor George Osborne said the main rates of the Climate Change Levy (CCL) would increase from 1st April 2019 to cover the cost of the CRC abolition.
A document published after the speech said:
“The increase on CCL main rates from 2019 to 2020 recoup revenue lost from the abolition of CRC and strengthen the incentive for businesses with the greatest potential to save energy.”
The Government also plans to introduce a new, simplified energy and carbon reporting framework by April 2019. The new reporting framework is expected to drive further improvements in energy efficiency and carbon savings whilst reducing the burdens of an overlapping system for businesses, third and public sector bodies. A consultation is expected to take place this summer.
Also in his hour-long speech, Osborne confirmed £730 million would be made available for the next Contracts for Difference auction to help support renewables.
TEAM would really like to hear you thoughts. Do you think it was a Climate Budget that delivered on the UK Government’s green promises? Has Mr Osborne delivered the promises you were hoping for?