Green reporting legislation too complex, says watchdog

Green reporting legislation too complex, says watchdog

The Committee on Climate Change has labeled incoming environmental legislation that will impact on finance functions as "unnecessarily complex", a week before its implementation date

Medium

The environmental watchdog has criticised upcoming green legislation, just a week before its introduction.

The Committee on Climate Change, (CCC) which advises the government on how to meet its emission reduction targets, has heavily criticised the environmental legislation as “unnecessarily complex”.

The reporting requirements around declaring energy-related emissions is expected to require finance functions to be involved in collating and presenting the data.

David Kennedy, chief executive of the CCC, said: “It’s something we struggled to understand, with my team of analysts who have worked in a number of governments, ” the Financial Times reports.

The Carbon Reduction Commitment (CRC) is due to be implemented on 30 September and requires around 25,000 organisations to report on how much energy they use. Around 4,000 companies from this group will also also have to pay for energy related carbon emissions.

The CRC has been swamped in complexity as the legislation had numerous changes implemented over the last year. One change in particular required companies affected by the CRC to pay for predicted emissions for both 2010 and 2011 in April 2010. This was changed to allow companies to pay for predicted emissions in April 2011 for the fiscal year 2011-12, therefore delaying payment of emissions for a year.

Chairman of the CCC, Lord Turner has asked the government to reform the legislation as well as conduct a review of all the climate change rules that apply to businesses.

Any business which misses the CRC deadline at the end of the month is to incur significant fines of an initial £5,000 payment and a daily charge of £500 until registered. Businesses will pay up to a maximum of £45,000.

Greg Barker, minister of state for energy and climate change indicated to the Financial Times that the government would be lenient on fining companies that are late to register.

He said he wanted to simplify the bureaucracy of the CRC scheme that the coalition inherited.

Further reading:

CRC still too complex and ineffective

FDs face ‘double whammy’ on carbon bills

Businesses have 18 days to register for CRC: PwC

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

4m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

8m

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3m

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

4m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource