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Businesses are reminded that as of 1 April, they may be bound by the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, which aims to lower emissions from commercial properties. The scheme aims to reduce carbon emissions from participating institutions by at least 4 million tonnes of carbon dioxide per year by 2020 – equivalent to taking 1 million cars off the roads.
It is anticipated that this will affect businesses in a variety of sectors from hotels to banks to schools and local authorities. It gives a financial incentive for reducing carbon from energy use by making companies buy allowances relative to their annual emissions. This will form the basis of a league table ranking the participating organisations in terms of their efforts to reduce emissions. The Carbon Trust estimate that approximately 20,000 organisations could be affected and 5,000 organisations will participate in the Carbon Reduction Commitment League Table. Performance in the league table could affect a businesses' reputation with clients, employees and investors.
Joan Ruddock, the Energy and Climate Change Minister, commented: "By taking measures to improve energy efficiency, businesses can slash their energy costs. The Carbon Reduction Commitment could help businesses save a total of £1 billion by 2020, whilst also helping them play their part in the fight against climate change."
In many cases, businesses to whom the CRC will apply have been preparing for the CRC for the past two years and have plans in place to reduce their energy consumption. With just a matter of days to go before the laws are enforced, the rest must now follow suit.
B P Collins acts for clients involved in all aspects of waste management and recycling. We also advise on environmental permitting and compliance issues. We have a long and established involvement in the renewable energy sector. Please contact our environment legal team on 01753 279075 or email environment@bpcollins.co.uk.
Posted by Alex Zachary
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