| Understanding DEFRA Carbon Plans |
| Written by Daniel Stouffer | |
| Monday, 14 September 2009 | |
|
It seems that the British, like the rest of us, like their acronyms. This seems to be especially true when it comes to the thorny problem of climate change. DECC absorbed DEFRA and BERR to put forward a more consolidated front, but however you look at that, the British are certainly blazing a trail within this arena and have passed what is effectively the first legally binding legislation with teeth.
It seems that the British, like the rest of us, like their acronyms. This seems to be especially true when it comes to the thorny problem of climate change. DECC absorbed DEFRA and BERR to put forward a more consolidated front, but however you look at that, the British are certainly blazing a trail within this arena and have passed what is effectively the first legally binding legislation with teeth. The DEFRA carbon approach resulted in the Carbon Reduction Commitment, a child of the Climate Change Act of 2008. The British certainly moved quickly on this to meet what are termed carbon budgets for the first years of the program. The CRC is an innovative climate change and energy saving program which has been designed to create a quantum shift away from traditional thinking. It is likely that many will seek to mirror the effects of the British government's novel approach, should the DEFRA carbon scheme be successful. The British government has worked with considerable speed, especially when you consider the traditional constraints of the European Union system. In a new era, carbon will become a commodity and will have an established price per ton. The British government is at pains to point out that those who are forced to participate in the Carbon Reduction Commitment will enjoy a net financial benefit in this new arena. They maintain a significant incentive will now be available should an organization reduce its carbon emissions. Those who participate in the UK government's DEFRA carbon scheme are likely to realize benefits in the region of around $1 billion over the next 10 years or so. The Treasury Department points out that there will be no net revenues to the UK's version of the Treasury Department as all income will be recycled back to participants. Although the UK government is very proactive in establishing the benefits of participation, there will in addition be considerable penalties should a company taking part in the DEFRA carbon scheme not perform efficiently. The Carbon Reduction Commitment will be the subject of a league table, which will be published for all to see, detailing those who achieve the most in terms of carbon reduction. Is expected that as many as 20,000 organizations in the United Kingdom will be expected to participate in the CRC, but that only 5,000 will actively participate by documenting their carbon liabilities and by purchasing allowances from the government. The UK has taken the lead in the fight against global warming and climate change by introducing sweeping legislation which is designed to commence in April of 2010. The target is to reduce carbon equivalent emissions of at least 4MTCO2 per year within 10 years. Compared to a 1990 baseline, this is a reduction of about 26% of greenhouse gas emissions, yet represents only the start of a push to huge reductions by the year 2050. The Article Author: Daniel Stouffer has much more information about DEFRA carbon and how a visit to www.verisae.com will be of use to you. |
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