An Order to implement the Carbon Reduction Commitment Energy Efficiency Scheme (or “CRC”) into UK law has been laid before Parliament and is expected to come into force on 1 April 2010. Businesses that are caught by the CRC are strongly advised to put in place their CRC strategies now, both to meet the imminent registration requirements and to ensure ongoing compliance and good performance.
The main driver behind the CRC is to reduce carbon emissions by encouraging businesses to be more energy efficient. Businesses that perform well and reduce their energy use will see this reflected on publicly available league tables and through financial incentives (known as the recycling payment). In contrast, those businesses that are not energy efficient, or are less efficient than other businesses, will find it harder to recover the costs of compliance (which will increase significantly over the life of the CRC) and may find that their reputation suffers.
Although many of the obligations under the CRC require technical expertise (for example, identifying and reporting on appropriate energy sources, implementing cost-effective energy abatement strategies etc.), more general strategic planning is also important. Our Environment and Climate Change Group has prepared a briefing which identifies the key issues that businesses should be taking action on now and provides further detail on some of the trickier areas for those that wish to know more. The briefing is available here.
