To ask the Secretary of State for Energy and Climate Change what methodology will be used to determine the cost to local authorities which do not reduce their emissions below their baseline of the purchase of carbon allowances under the Carbon Reduction Commitment (CRC); and what he expects the average expenditure of a local authority on such allowances to be in the first year of the implementation of the CRC. (308698)

Any costs (or financial benefits) attributed to local authorities or other CRC participants will be based on a participant's relative placing in the CRC league table. The expenditure of a local authority or other CRC participant on the purchase of carbon allowances cannot be forecast as it will depend on a range of factors including participants' planned energy efficiency improvements and their approach to risk management.