Breaking news from the UK Parliament: the Chancellor, George Osborne, is currently delivering his Budget speech in the House of Commons.

He has just made a key announcement, which will affect a large number of our clients: he has said that unless significant savings can be made in the administration costs for businesses of complying with the CRC, he will bring forward proposals in the Autumn to replace the CRC with a green tax.

Launched in 2010, the CRC is a mandatory emissions trading scheme for large non-energy intensive organisations and is one of the UK’s flagship green schemes.

Our view: without primary legislation, it’s highly unlikely that the Chancellor will be able to reduce the costs of the CRC. That means – and this will be regarded as good news by many – it looks increasingly likely that the CRC is going to be abolished. Attention will then focus on its replacement: a new green tax.