Whitehall to join emissions trading scheme

A new emissions trading scheme in the UK will see large businesses, including hotels and supermarkets, exchanging carbon emissions. All of the government’s central departments at Whitehall are to take part in the scheme.

The Carbon Reduction Commitment (CRC) is a mandatory scheme, and will come into effect from 2010. It is hoped that the scheme will reduce carbon emissions by 4 million tonnes every year before 2020.

Under the scheme, around 5,000 public organisations and private businesses will be forced to reduce environmentally damaging emissions, or pay for extra credits.

Local authorities and hospitals will receive £30 million in support to ensure that they are environmental up to scratch before the CRC comes into effect. This money is to come from a new £400 million fund announced by the government in February. A current fund of £21 million has already been shared between over 100 public organisations, paying for over 1,000 projects reducing energy usage.

Hilary Benn, announcing that Whitehall would take part in the scheme, said: “The Government has to show it’s serious about reducing CO2 emissions.

“This means the public sector improving the energy efficiency of its buildings and doing this quickly.

“It won’t be easy for all organisations in the public sector to cut their emissions quickly, even though they’ll be saving taxpayers’ money in the long run by reducing energy bills.

“That’s why we’re making £30m in interest-free loans available.”