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Unprepared For Emissions Bill

01 Apr 2009

Most businesses are totally unprepared for the forthcoming Carbon Reduction Commitment (‘CRC') regulation.

Most businesses are totally unprepared for the forthcoming Carbon Reduction Commitment (‘CRC') regulation, according specialist environmental consultancy Envos. The draft legislation which is currently under consultation will mean a group of around 5,000 businesses will soon have to pay a total of approximately £660m a year for their greenhouse gas emissions, but Envos says that 90% of businesses are well behind the curve on improving their energy efficiency.

The CRC will oblige all organisations with an annual electricity usage of more than 6000MWh to buy carbon credits at a price of £12/tonne of the CO2 they emit, starting from April 2010. The energy usage cuts these companies make will then govern their place in a league table. After three years the money paid will be reallocated with a bonus or penalty depending on the company's position in the league table.

Envos says that UK businesses are losing nearly £50m a week due to poor energy efficiency, and yet 90% of the businesses spoken to still haven't taken simple steps such as obtaining an Energy Performance Certificate (EPC), which is now obligatory for any commercial property before it is marketed for rent or sale.

Recent research from the Institute of Directors suggests that businesses addressing energy efficiency had reduced their bills by 6-10%. These cost savings apply to the large companies affected by the CRC, but they are equally applicable to small businesses who need to wake up to the serious medium to long-term net cost savings they can make by investing in energy efficient solutions, especially for their properties.

News source: Courtesy of Glass & Glazing Magazine