The UK and Scottish Governments have reported back on a consultation into a scheme to reduce carbon emissions through better energy efficiency.

Two key changes have been agreed by the UK and Scottish governments in how a new carbon reduction scheme to reduce carbon pollution from businesses and organisations will be implemented across the country.

The Carbon Reduction Commitment - now to be known as the CRC Energy Efficiency Scheme - is the UK's first mandatory domestic scheme which will require large organisations such as supermarket chains, hotel chains, office-based corporations, government departments and large local authorities to reduce their carbon emissions. The response sets out changes being made in the light of views received from stakeholders.

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Two of the most important changes are participants will no longer be required to buy allowances for their carbon pollution for the first two years in one lump in April 2011 and large organisations can now choose to split themselves into smaller groups to participate in the scheme independently.

Stewart Stevenson, Minister for Climate Change, said: "This new commitment will encourage businesses and organisations to think about the energy they consume and help them make important decisions about how they operate.

"From 2010, we will be looking to reduce carbon pollution on an annual basis as we work towards reaching the target of 42 per cent reductions in emissions as laid out in the Scottish government's world-leading Climate Change Act. Next summer we will publish the plans and proposals that we will adopt to set us on a trajectory towards a low-carbon future. This is part of that commitment."

(GK/KMcA)