Carbon Reduction Commitment (CRC) Energy Efficiency Scheme will hurt business

This blog has previously discussed the government’s money hoover that is the Carbon Reduction Commitment (CRC) which was recently renamed as the CRC Energy Efficiency Scheme, that is due to come into force in April this year.

Many businesses will be adversely impacted financially, while the largest corporates that are already covered by the EU’s emission trading scheme that enables them to make money from CO2 emission trading, are exempt.  Adding weight today to the argument of impending financial damage is accountancy giant KPMG, which is:

[…]warning finance directors that more than two-thirds of organisations will be hit with financial penalties following the introduction of the Carbon Reduction Commitment (CRC).

With just 20 days to go before the start of the CRC, the Big Four Firm is warning finance directors they risk severe financial penaltities and reputational damage, if their organisation fails to comply.

The Accountancy Age piece goes on to explain that KPMG believes the biggest risk to companies is incorrect reporting of their carbon emissions, from which they could incur substantial fines and severe reputational damage.  This UK version of a carbon cap and trade scheme risks doing serious financial harm to businesses already struggling in difficult economic circumstances.

Regardless, the government is pressing ahead with what is a massive transformation that sees business incurring costs over and above the expense of what amounts to a carbon tax.  I make no apology for repeating yet again that this economic vandalism is being carried out of the basis of a theory that hypothesises CO2 is causing global warming.  There is only correlation, no evidence of causation.  The net effect of this smash and grab raid on company bank accounts and the cost of compliance, reporting and administration is an increase in the cost of goods and services to the ordinary consumer in the street.

We have departed from an age of reason and logic and entered an age where a belief system, shown to be a tissue of assertions impervious to evidence, holds sway.  The real aim of this concerted effort is financial redistribution and an increase in the power and control of the state over its population.  Some argue this is actually the embryonic development of a system of global governance, tied together with a common currency – carbon.

Regardless, the impact will be borne most by those who have least, and no one in the political class has any interest in scrutinising this disturbing activity or protecting the interests of the people they are supposed to represent.  This is the state we’re in.