Carbon Action Yorkshire is providing large businesses and public sector organisations across the Yorkshire region the opportunity to experience a simulation of carbon trading in a 'risk free environment' in advance of the Government’s Carbon Reduction Commitment (CRC) from April 2010.
The trading of credits will be symbolic at first, with no money changing hands, but organisers say the lessons learned will make a huge difference to Yorkshire firms and taxpayers when the Government's CRC programme comes into force.
At least 40 Yorkshire businesses and public services including NHS bodies, councils, BT and KMPG have signed up to the scheme which will start this month.
A carbon 'budget' will be set based on data received on energy use from the participating organisations. Participants will bid for allowances, planning to reduce emissions to meet the quantity of allowances available. Those whose carbon output is too high will have to 'buy' credits from their greenest neighbours. After the CRC simulation has run for a year, the region's most efficient organisations stand to 'save' cash by selling carbon credits they no longer require to heavier polluters.
Commenting on the scheme, Ed Miliband, Energy and Climate Change Secretary said:
"This initiative by Carbon Action Yorkshire and its partners shows great vision. It’s easy to assume that carbon trading is for big governments to talk about at global summits but the truth is that everyone has a role to play in tackling climate change and it is great to see this exciting activity being carried out by business at a local level."
"Carbon trading is a highly effective tool for cutting industrial carbon emissions by helping reduction take place where it costs the least. It provides real incentives for those who cut their emissions and invest in low carbon technology."
For further information on the scheme, access the Carbon Trading Yorkshire website here.
For further information on the CRC, access our review here.