News

Packaging Federation chief executive Dick Searle has reiterated the need for the Carbon Reduction Commitment (CRC) to include "some element of past performance" to avoid discriminating against industry.

The government announced yesterday (13 March) that, from 2010, firms that have electricity bills in excess of £500,000 would be required to pay £12 per tonne of carbon dioxide produced.

Following a consultation last year, the government said an initial rate of £12 "struck a balance" between providing a strong price and limiting costs faced by participants.

Firms that are already signed up to other carbon trading schemes will, however, be exempt from the CRC. Qualification for the scheme will be based on 2008 figures.

But Searle criticised the scheme for "putting pressure on businesses" rather than society at large.

"It does seem worrying that people are not given credit for past performance; manufacturers have been working to reduce energy use for ages.

"This is for those who've not previously done much to reduce [energy consumption] and industry will be penalised for already having done things," he said.

The CRC is to be implemented via the Climate Change Bill, which is going through parliament at the moment.

The government said there would another consultation on draft regulations this summer.