Government accused of "blackmailing" firms over emissions trading scheme

one source said that the CRC scheme would force the hand of companies opposed to the current rules for measuring carbon emissions from renewable energy

A number of the UK's leading firms have accused the government of blackmailing them into accepting conditions within the forthcoming Carbon Reduction Commitment (CRC) carbon trading scheme that will effectively punish those firms that procure green energy.

A BusinessGreen.com investigation has learned that a number of the UK's most high-profile firms, including Asda, BT, B&Q, the Co-operative Group and Morrisons, are concerned about rules introduced as part of the CRC that will ensure that much of the renewable energy they use will be measured as having the same carbon footprint as electricity from the national grid.

They argue that consequently firms that procure energy from many renewable sources will not see the investment recognised through the carbon trading scheme, which is to come into full effect from next year and affect about 5,000 firms.

Some critics even claim that government attempts to compensate those firms investing in renewable energy through an early adopter scheme constitute a form of blackmail.

The early adopter scheme is designed to help firms investing in renewable energy bolster their position in annual CRC league tables measuring the UK best and worst emitters of greenhouse gases. But one source said that the scheme would force the hand of companies opposed to the current rules for measuring carbon emissions from renewable energy by effectively railroading them into accepting a method of accounting that still largely fails to reward procurement of green energy.