The CRC and how it affects you
Wondering how the government’s Carbon Reduction Commitment (now known as the CRC Energy Efficiency Scheme) will affect you? Looking for a greener property, or thinking about how to improve the carbon footprint of your business?
The new CRC scheme, which began on April 1 this year, is mandatory for organisations consuming more than 6,000 MWh of electricity a year – those with annual bills of about £0.5m, but the effects may trickle down to smaller companies as businesses come under increasing pressure to reduce their carbon footprints and become greener organisations.
The scheme covers both private and public-sector organisations and it has been estimated that around 20,000 businesses have had to register, with around a quarter of these set to participate fully in the process, by buying carbon allowances each year.
As the Liverpool Daily Post noted in March, the position between landlords and tenants is controversial, because the scheme treats the organisation with the supply contract as the one that has used the power and does not divide allowances between landlords and tenants. The British Property Federation produced a guide for landlords and tenants last year and the results of a working party into this issue are “eagerly awaited”, it added.
In the meantime, office space provider Portal has commissioned research into this area with the aim of helping the commercial property industry understand the importance of the scheme and assisting companies in planning their own sustainable strategies. The “white paper” cites research showing positive returns when buildings are developed or refurbished with carbon management as a key target within the design. “At the same time, clients are increasingly looking for properties which have low emissions and greater energy efficiency”, it adds.
