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Pre-Budget: Rethinking the Energy Efficiency Taxation Landscape
With the energy efficiency taxation review just around the corner, it is expected that the CRC Energy Efficiency Scheme will be scrapped or at least changed significantly. Below, we make three key predictions:
What are the key predictions for the upcoming budget review?
- A simpler energy efficiency taxation landscape: A single new tax based on the climate change levy and a single reporting framework
- Scrapping of the CRC Scheme
- Further developments based on ESOS supported by an incentivisation scheme to drive the implementation of improvement measures.
Moving away from the older policy environment, the translation of theory to practice will present new opportunities to utilise ESOS to spur the uptake of energy efficiency measures. Following on from our reflections on ESOS, it makes sense for businesses to develop strategies to address energy regulations in a coordinated fashion and to reap the benefits of a combined approach. A good example of this is having a combined approach to ESOS and MEES, where meeting minimum energy efficiency requirement aligns with the broader achievement of reducing energy costs in the building.
Please stay in tune for the budget announcement on the 16th of March 2016 and our post-budget review.