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Design, Build & The Environment
Education is still unprepared
for CRC legislation
by Helen Nisbet
A
simulation of new carbon cutting legislation virtual carbon trading days and compilation of because of the serious liabilities involved in the CRC.
has highlighted that the majority of performance league tables to practically Helen Nisbet, Project Manager for the CRC
organisations affected, including Local Education demonstrate what will be required under the new Simulation at TNEI explained:
Authorities and large educational establishments, legislation. “Companies participating in the simulation have
will struggle to collect and verify their energy data The lessons being learnt from the simulation are shown a foresight and understanding that this
risking unnecessary costs, penalties and in extreme helping participating organisations prepare for the legislation needs to be taken seriously. They should
cases facing criminal prosecution for non- legislation and identify “quick wins” that will be given credit for preparing for the full impact of
compliance. improve their position in a carbon performance the CRC and their early action will stand them in
The Carbon Reduction Commitment, CRC – league table that will form a key part of the CRC good stead for the real thing.
Energy Efficiency Scheme comes into effect in April Scheme, when it goes live next year. “We would urge all companies and organisations
next year with qualifying organisations required to Virtual online auctions held as part of the that may be affected by the CRC not to
buy carbon allowances to cover the carbon simulation have revealed that when trading for underestimate the resourcing issues of measuring,
emissions they produce. Local Education carbon allowances many organisations could be managing and reporting carbon emissions.
Authorities and educational establishments will be exposed to unnecessary financial risk and potential Ultimately there will be both financial and
among those affected by the new carbon cutting cash flow problems. In general, the trading teams resourcing costs that need to be budgeted for.’
laws and need to act now to ensure they are CRC- have no clear purchasing strategy and lack the There are still opportunities for organisations to
ready with LEAs responsible for collecting and purchasing power to secure carbon allowances at a identify “quick wins” that will deliver long term
reporting all carbon emissions data from their reasonable cost, with the result that if the trading savings under the CRC Scheme next year and make
schools and other premises. was real, companies would have lost significant a significant impact on their performance in the
Regional development agency, One North East amounts of money. carbon league table.
commissioned energy consultancy TNEI Services to One of the most serious issues identified was
run a 12-month simulation of the CRC scheme to how to account for the money needed to buy
trianglertwww.tnei.co.uk
give organisations in the region a head start and carbon allowances, which in some cases will trianglert0191 211 1400
help them prepare for the new laws. One of the amount to hundreds of thousands of pounds, as
key aims is to reduce the risk of North East well as recognising the impact this will have on cash
organisations incurring unnecessary penalties and flow and profitability.
accelerating the region’s drive to deliver significant Other feedback from the simulation has focused
carbon reductions. on the need to appoint a “CRC Team” to take joint
Around 30 organisations in both the public and responsibility for their organisation’s compliance
private sector are taking part in the year-long spanning senior management, finance, energy
simulation involving energy and carbon reporting, management and possibly the legal department
CRC Energy Efficient Scheme Timeline - Introductory Phase
26
www.education-today.co.uk December 2009
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