Understanding DEFRA Carbon Plans
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by: DanielStouffer | Total views: 47 | Word Count: 464
The British have, like all of us, their own fair share of acronyms, but consolidated some of them when DECC absorbed DEFRA and BERR in an attempt to more effectively address the big problem of climate change. They have certainly made massive strides forward as the government promptly introduced the first far-reaching, legally binding legislation to the marketplace.
The Carbon Reduction Commitment was a direct result of the unified DEFRA carbon approach, as a consequence of the Climate Change Act of 2008. Within the act, a series of "carbon budgets" would be initiated and the CRC itself determines an innovative approach to energy saving and climate change, designed to make a significant shift in the traditional thinking.
It seems that the British government was able to work outside of traditional European Union constraints when they initiated the current DEFRA carbon scheme. Should it be successful, it is likely that this program will be mirrored in many parts of the developed world as well.
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 is at pains to point out that the scheme should benefit those who are forced to participate and not be seen as yet another administrative burden.
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.
Somewhere in the region of 5,000 organizations across the United Kingdom must actively participate as part of a group of some 20,000 who will be impacted in one way or another. The active group must document their carbon liabilities and purchase a relevant amount of allowances from the government as they take part.
By the year 2050, the UK plans to have made huge reductions in the amount of greenhouse gas emissions across the country. Significant goals are set and commencing in April of 2010, the first goal is to reduce carbon equivalent emissions of at least 4MTCO2 per year within 10 years. This would be a reduction of 26% compared to a 1990 baseline and considered vital in the fight against global warming and climate change.
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