DEFRA Carbon Initiatives Break Ground
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.
There has been a significant shift in the way of thinking as a consequence of the Carbon Reduction Commitment, born out of the Climate Change Act of 2008 and the result of a unified DEFRA carbon approach to the issue. The Commitment signifies an innovative approach to climate change and energy saving and the enactment of a number of “carbon budgets.”
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.
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.
The total number of benefits available to participants in the UK government’s DEFRA carbon scheme will amount to somewhere around $1 billion by the 2020. It appears as if there will be no net revenues to the UK’s version of the Treasury Department as all income will be recycled to participants as part of the process.
If, as a participant, you are not able to perform well as part of the DEFRA carbon project, the UK government will not be slow to tell everyone else about it. While there are benefits for those who over-achieve, those who under-achieve as part of the Carbon Reduction Commitment will see results published as part of a league table, available for all to see.
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.
Daniel Stouffer has much more data about DEFRA carbon and how a visit to www.verisae.com will aid you.
