From April 2010 British businesses will be legislated into the front lines of the country's battle to reduce its carbon footprint. The mechanism, "The Carbon Reduction Commitment Energy Efficiency Scheme" which begins in April 2010, will set mandatory carbon emission limits from 2013, for all businesses using more than 6000 MWh (roughly equivalent to £500k per year) of electricity. These organisations will fall into a carbon trading scheme allowing heavier polluters to buy permits from those companies whose emission are below the limit.
Critics of the scheme claim it is overly complex, difficult to administer and potentially very costly, whilst its supporters, amongst them Michaela Wright, head of CSR at the HSBC subsidiary First Direct see the scheme as an opportunity for responsible businesses to see real financial returns on their sustainability programmes. According to Wright, "The real issue isn't one of complexity; it's one of readiness and uncertainty.
In some ways it is unsurprising that there is a certain degree of apprehension. While the UK's heavy industry has been covered by the European Emissions Trading Scheme since 2005, the CRC EES trading scheme is the first of its kind to target a 'demand side' reduction in energy use from large service businesses and public sector organisations.
For the majority of organisations covered the financial benefits of reduced energy consumption, which result from the carbon emission reductions the scheme seeks to impose, will significantly outweigh the costs. By taking early action before the scheme starts businesses can also reduce compliance costs, through installing smart metering and by achieving certification with the Carbon Trust Standard. Forward thinking organisations will also secure the reputational benefits of a leadership position within the published league tables in 2011, and in advance of this we are already seeing those businesses being rewarded by their customers for demonstrating good carbon credentials.
Common sense or not, the CRC will be one of the most important pieces of environmental legislation to hit the statute books in the last decade. Even more so if it works. With a world economy struggling to balance its priorities between recovery and sustainability, two agendas which so often seem to contradict each other, a template which brings the two together could be, just could be, world changing.
Saturn Energy Ltd can help you through the application process and ensure you meet legislation in order to avoid heavy fines.
