All that thinking about how to deal with CRC in commercial leases, and then along comes the HM Treasury Spending Review. See paragraph 2.108: “The CRC Energy Efficiency scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011. Revenues from allowance sales totalling £1 billion a year by 2014-15 will be used to support the public finances, including spending on the environment, rather than recycled to participants. Further decisions on allowance sales are a matter for the Budget process.” So, there will be a delayed first year purchase of allowances, but no recycling payments. Little wonder the CRC Regulations had not provided for them in the first place. This announced review will not, as suggested, reduce the cost burden on business. It will impose a form of carbon tax on business which building owners will seek to pass on to building occupiers, and which occupiers will try to resist. Some tenants who have already signed up to CRC lease clauses will be hastily reviewing what they have just committed themselves to.
Property PSL