Policy Carbon reduction
Myth makers
How do we separate fact from fiction in the expectations surrounding the
Carbon Reduction Commitment? Richard Hipkiss offers a guide
‘B
urdensome, a stealth tax, unfair, restrictive, action to reduce the emissions under their control.
punitive’ – these are just a few of the The sooner organisations wake up to devolved
negative comments I hear from client responsibility, the more prepared they will be for the
companies who are looking to take on the CRC implementation process.
Carbon Reduction Commitment Energy Efficiency
Scheme (CRC). Much of this criticism seems to be ‘The polluter pays’
based on hearsay. When the rules, intentions and There is also a misguided impression that the ‘polluter
requirements of the scheme are explained to clients pays’ is the main principle behind the CRC. The key
in both the public and private sectors, they are quick aim, in fact, is to ensure that organisations, groups of
to see its potential value to their business. organisations under the same banner, or even those
The roll-out of CRC has created significant confusion in a transactional relationship, are working together
among building owners, operators and industry to change behaviour and infrastructure. The reality is
professionals – more so even than the scheme’s that the same challenge applies to a larger company
distant cousin, the Energy Performance of Buildings with multiple sites as to a local authority that has
Directive (EPBD). From a geographical perspective the responsibility for schools, or a landlord with many Shutterstock
EPBD is a European approach, with specific member- tenants. These all have to consider the infrastructure
state variations applied by EU member states and and how to implement energy efficiency collectively.
implemented differently across UK countries. The But it is equally true that, under the CRC, there is no
CRC, on the other hand, is deployed only in the UK gain without some pain. However, landlords will argue
with a single set of rules for all participants. There are, that, where the polluter is the tenant, they may not pay
however, softer links, as, in reality, action under one directly, or even at all.
measure will support activity in the other.
So what are the most common myths and ‘No need to act now’
misconceptions surrounding the CRC? Perhaps the biggest myth surrounding the CRC – and
potentially the most readily accepted one – is that to do
‘Just a stealth tax’ nothing until the scheme starts and is under way will
Despite the Department for Energy and Climate be beneficial. This misconception is based upon the
Change going to great lengths to communicate to fact that the initial scheme year is the footprint year;
potential participants that the CRC is revenue neutral, hence, by having a higher carbon footprint at the start
a view remains that its main purpose is to raise cash of the scheme, it will be easier to reduce emissions
for government. and move quickly to the top of the league table. The
There is little doubt that the aim of the scheme is simple fact remains that the potential for benefit is in
to generate infrastructure and behavioural change in the implementation of energy efficiency without delay
both private and public sector organisations, leading to make savings on energy costs directly.
to improved energy efficiency. Surely this is a benefit In fact the design of the league table involves three
to organisations? Energy efficiency can often lead to metrics – one to determine an organisation’s position,
both business and financial efficiency, especially with based on its absolute carbon reductions, with optional
the continual rise in the cost of fuel and power. growth and early action metrics. The latter warrant
closer examination.
‘Not my responsibility’ There are two early action metrics: certified reduction
The biggest
There is a general assumption among multi-site of carbon emissions over a three-year period by:
organisations that ‘Head Office’ or ‘Corporate’ or a) gaining the Carbon Trust Standard (or equivalent),
myth is: it’s best
‘Central Services’ will take the responsibility for the and b) the installation of automatic meter reading
to do nothing CRC. It’s true that the scheme is an organisational (AMR). The weighting has been increased and extended
until the scheme
approach and that the responsible party for reporting to make both more attractive, which is commendable.
emissions will usually be the highest parent company. But even without the weighting, consider the benefits
starts and is
However, every individual retail store, school or office of AMR, which provides accurate knowledge of actual
under way location will have a responsibility to report and take consumption.
30 CIBSE Journal March 2010 www.cibsejournal.com
CIBSEmar10 pp30-31 CRC.indd 30 25/2/10 15:52:49
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