Now it really matters
The UK’s CRC scheme originally had more carrot to it, but now there’s more stick
Long before the UK’s Carbon Reduction Commitment (CRC) became a reality, some companies were advising clients on the need to cut the over-use of resources.
Sustainability Plus Europe has been working with a number of organisations in the ports sector, providing its sustainability audit and consultancy services. “Cost is obviously the main driver,” says managing director Marie-Clare Brind. “Energy is not going to get any cheaper. Security of supply is also a concern – we do not hold the same energy reserves in the UK as we used to and demand/supply is finely balanced.
“Legislation is increasingly a driver. The UK government has set strict targets in carbon reduction, hence the CRC Energy Efficiency Scheme. “Then there is risk and reputation; market leaders have to be seen to do the right thing. According to research, major companies see the league table for the CRC as a considerable risk – loss of reputation has its own cost factor.”
The CRC scheme is central to the UK’s strategy for improving energy efficiency and reducing carbon dioxide (CO2) emissions, as set out in the Climate Change Act 2008. It has been designed to raise awareness in large organisations, especially at senior level, and encourage changes in behaviour and infrastructure. For example, publication of the Performance League Table is seen as a large reputational driver.
It was originally designed as a support scheme, with revenue from the sale of CRC allowances, which are predicted to total £1 billion a year by 2014/15, being recycled to participants, but it seems now that instead, given the UK government’s need to raid the piggy bank, the revenue will be used to support the public finances. This will be seen by some as taking away the carrot and leaving only the stick.
However, the government also is simplifying the scheme to reduce the burden on businesses, and the first allowance sales for 2011/12 emissions are now taking place in 2012 rather than 2011.
Still, CRC compliance is a complicated issue. But just to clarify one point, says Ms Brind: “The government can’t lock up thousands of chartered surveyors for non-compliance with the CRC. It’s not the surveyors who get locked up (it was decided they probably wouldn’t be missed) but a main board director of each of their major clients. Now it really matters.”
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