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Maximising the efficiency of the CRC - Response to Government


As the CRC currently stands, any emissions reductions [my company] achieves from reductions in electricity consumption will not result in net global emissions reductions. This is because fewer EU Allowances will be purchased by energy companies, meaning more are available to other sectors. These emissions will be displaced, not eliminated.

This could be simply resolved by the Government retiring a number of EU Allowances from its national allocation in the EU Emission Trading Scheme that corresponds to the volume of emissions reductions achieved by CRC participants each year.  This would ensure that the allowances left unpurchased by power companies due to energy efficiencies in the CRC were not then available to other industries. 


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