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Firms to get one year's grace on carbon reduction charge

The Government has said companies hit by the Carbon Reduction commitmen scheme will not have to pay up for their carbon emissions in the first year of the scheme.

Announcing new details today, the Department for Energy and Climate Change said that organisations will only have to report emissions for the first year, and buy allowances thereafter.

DECC also said that as part of the scheme, recognition will now be given to organisations which use onsite renewable energy like wind turbines or solar panels by publishing the increased carbon savings from those measures.

The CRC has been unpopular with some of the larger contractors who think there are considerable administrative difficulties in dealing with the scheme.