UK government introduces new programme for reducing emissions

The “Carbon Emissions Reduction Target” (CERT) programme came into force on April 1, 2008. It replaces the “Energy Efficiency Commitment” (EEC) programme which was introduced in 2002 and aims to decrease CO₂ emissions from homes. CERT is designed to achieve a total CO₂ reduction of 154 million metric tons. UK energy companies have three years to take appropriate measures. These include cavity wall insulation, energy-efficient boilers and electrical appliances as well as energy-saving light bulbs. At least 40% of these measures must be aimed at low-income homes. UK energy companies are expected to have to spend a total of £2.8 billion.

CERT was expanded by the UK government on September 11, 2008, and the target for reducing CO₂ was raised by 20% to 185 million metric tons. This is expected to result in a further cost of around £560 million to the energy sector. Furthermore, the government announced the “Community Energy Saving Programme” (CESP), which also involves pure generation companies. Under the CESP, energy companies will work with communities and charitable organizations to offer assistance to customers in the most deprived areas of the UK. The government is currently discussing the programme with the energy industry. The way in which help will be offered remains to be clarified. Resulting costs for energy sector are an estimated £350 million.