Ellen James, a real estate lawyer at Bircham Dyson Bell believes that the latest recommendations to simplify the CRC have simply added to the growing number of consultations and red tape the Government has already gone through, and has yet to result in final form legislation, making a mockery of its 'environmentally friendly' credentials.
"Since 2006 there have been three formal consultations each with its own 'response', five discussion papers leading to a document to outline the Government's key proposed changes, to be followed by a formal consultation of the draft legislation planned for February 2012," explains Ellen James, Associate at Bircham Dyson Bell, "and that doesn't take account of the legislation and guidance issued in draft and published form and then amended by further legislation".
"It's safe to say that so far it has not been the most environmentally friendly of processes - just to print all the documents alone would take reams of paper."
At the end of 2010, at the Government's request, an alliance of the major property industry bodies made some key recommendations in a bid to simplify the CRC. The latest proposals are moving in the right direction but with CRC's status as a carbon tax confirmed, it seems that the process is leaning towards raising money in a recession, than reducing carbon as it set out to.
"Essentially, companies need to buy enough 'credits' to cover their carbon emissions at one of two fixed price sales during each year. Credits are available at a lower price at the beginning of the year, but should the company use more energy than it estimated it will need to buy top up credits at the end of the year at a higher price," says Ellen.
"One has to question how effective CRC is in terms of reducing carbon emissions; or if it's a Government money spinner - the primary driver for most organisations remains the cost of power, not the additional tax to pay on it.
"League tables comparing the performance of companies participating in the scheme may provide a reputational incentive, particularly for participants who have corporate sustainability programmes, but when recession bites, ultimately cost is the driver.
"The process is still horrendously complicated and given the amount of red tape the Government has gone through already, one has to ask if it's all going to be worth it?"
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