DEFRA Carbon Plans and the Carbon Reduction Commitment
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 definitely swiftly made a move on this in order to meet carbon budgets on the program's first years. The CRC energy saving program was designed out of the box and is indeed a very innovative way of contributing solutions for climate change.Many observers worldwide have been impressed by the DEFRA carbon approach and by the speed with which the British government has worked to consolidate its position and to move beyond the traditional restraints of the European Union. Should their program be successful, it is likely to be copied in many different parts of the world.The Carbon Reduction Commitment is designed to place a financial incentive on carbon emission reduction by, for the first time, establishing carbon as a commodity and fixing a price per ton. The government points out that this shall benefit those who are compelled to get involved and should not be taken as a burden.Benefits given by the UK government to the participants of the DEFRA carbon scheme might reach to about $1 Billion by 2020. Revenues which will come from the scheme are neutral to the exchequer which is the UK's version of our Treasury Department. Revenues will be recycled to participants in this way.While the government is ready to encourage and provide financial incentives, in a sense at least, it is not afraid to wield a stick in addition to dangling the carrot. The only risk that DEFRA carbon scheme participants might face in the event of under-performance will be lowering its own reputation. A league table will be published for all to see and judge.It is expected that approximately 20,000 organizations will participate in CRC in different initiatives, but out of this number, only 5,000 shall be required to participate actively through regular documentation and monitoring of carbon emissions and through 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 goal is to achieve carbon equivalent emissions reduction to at least 4MTCO2 every year in 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.
DEFRA Carbon Plans and the Carbon Reduction Commitment
By: Daniel Stouffer
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