Wednesday, August 11, 2010

UK carbon schemes well set up for organized crime, 'green' taxes pile on already struggling companies

8/9, Central Europe's largest utility "CEZ stops some carbon trade over fraud suspicions," Reuters,
8/10, "Business facing a wave of green taxes," Telegraph UK, by Kirkup, Wallop, and Gray
  • "From April 2011, firms will need to buy permits for each tonne of carbon dioxide emitted.

Companies that fail to register their energy use by next month will be hit with fines that could reach £45,000

  • under the little-known rules.

Those that do participate in the Carbon Reduction Commitment (CRC) initiative by declaring their energy use will face charges for every ton of greenhouse gas they produce.

  • These payments are expected to average £38,000 a year for medium-sized firms, and could reach £100,000 for larger organisations.

Surveys have shown that

The imposition of new charges and fines will put pressure on firms at a time when economists are

The scheme is intended to create a financial incentive

  • to cut energy use,

and those organisations that record the biggest reductions will get bonuses, funded by penalties imposed on those with the worst record.

  • Of about 4,000 organisations estimated to qualify for the scheme, only 1,229 have registered to date,
  • leaving thousands at risk of fines....

Another 15,000 smaller organisations are also required to register and could be expected to buy permits in the future. If they miss the September deadline, they face fines of £500....

  • The Environment Agency, which will run the scheme for the Government,
  • has refused even to publish a list of the companies that are required to register.

The Coalition is pressing ahead with the CRC despite Conservative pledges to cut red-tape on businesses.

  • Business groups said the paperwork and costs involved in complying with the CRC scheme could put a
  • significant new burden on companies already struggling
  • in an uncertain economic climate.

The Bank of England is expected to underline fears about the economy today with forecasts for

  • faltering economic growth and persistent inflation.
  • Yesterday, the Chartered Institute of Purchasing and Supply reported
6/22/10, "UK raises VAT tax to 20% in budget," RTE News. (VAT tax countries are most easily exploited
  • by organized crime carbon trading).
via Tom Nelson

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