Scrap CRC and overhaul punitive green policy says CBI

CBI chief John Cridland accused the government of using environmental policy purely as a revenue raising tool. The Carbon Reduction Commitment (CRC) had become a punitive profit drain on industry and must be scrapped, he warned. Proposals to introduce a floor price on carbon emissions also came under fire from the CBI. The scheme risked "tipping energy-intensive industries over the edge", Cridland warned. "Over the last year the Government has triple-dipped into the industry till because of the need to raise revenue, with the Carbon Reduction Commitment, Carbon Floor Price and the recent hike in oil and gas tax." Cridalnd added: "At a time when rebalancing of the economy needs UK manufacturing to be playing a bigger role, energy intensive industrial users need more help. But the Budget unilaterally increased their cost base." The cost burden could drive manufacturing off shore, the CBI chief added. "We're already seeing warnings from companies like Ineos that its chlorine plant in Runcorn could become uneconomical under the sudden introduction of the proposed carbon floor price. Tata steel is facing the same problem." The CRC should be abandoned and replaced with a simplified green tax, Cridland recommended. He also called for exemptions from the carbon floor price for companies that improve energy efficiency. The government must use this summer's energy white paper to deliver a coherent and confident message to industry on the future energy provision, Cridland concluded. He said: "We also need the answers from this summer's energy White Paper. I am not yet convinced that they will be there. We don't want a white paper heavy on promises of round-table meetings and departmental listening exercises and light on the boldness and certainty that's required." Cridland's comments came at a CBI energy conference.