In the 2010 Comprehensive Spending Review (CSR) the government made a number of key announcements that will have a big impact on the future of the UK’
s low carbon economy
. One
initiative in particular that will be significantly affected is the Carbon Reduction Commitment (CRC). David Mole is Deputy Managing Director of Landmark UK Property, a company that at the start of 2010 launched a new online service to help businesses get to grips with the scheme. Here, David explores what the future might hold for the CRC and what advice he would give to participating businesses.
It was clear in the CSR last year that the government has ambitious plans for dealing with climate change and set out a number of new initiatives for achieving its objectives. However, some observers felt that the CSR may not have gone far enough in dealing with the UK’s environmental responsibilities.
One of the most controversial announcements made in the CSR was that the government would be keeping revenues raised from the CRC scheme, instead of recycling the money back to the organisations taking part, with no guarantee they will be spent on environmental initiatives. This was followed by Chris Huhne’s announcement that the scheme as a whole will be delayed, with the first sale of permits to cover energy use now taking place in 2012 as opposed to next year.
Widespread reaction to the scheme was that it was too complex and as such the Government has pledged to make the process simpler, and launched a consultation to address this. The findings, which are still yet to be announced at time of print, should hopefully address the uncertainty amongst participants and offer some clarity for the future.
One thing that is for certain is the need for authorities and organisations to focus more than ever on recording and delivering the necessary data as efficiently as possible, particularly in the public sector where widespread job cuts are likely to leave staff and resources stretched. The introductory phase provides the perfect opportunity for authorities and organisations to gain experience on reporting and complying with CRC, before the purchase of allowances from April 2012.
CRC compliance and auditing tools
In January 2010, Landmark launched its online data management software tool, Carbon Counter (www.
carboncounter.co.uk), and has been working closely with a wide range of organisations to help them understand and manage their obligations under the scheme. Using Carbon Counter organisations can save time and ensure that their data is fully compliant with the legislation,
|34| ENVIRONMENT INDUSTRY MAGAZINE
The Future Of The Carbon Reduction Commitment
By David Mole, Deputy MD, Landmark UK Property
and has been designed to ensure that participating organisations provide the right information in a format appropriate for the Evidence Pack required by the Environment Agency.
Almost half of these currently signed up to Landmark’s Carbon Counter are made up from public sector organisations, such as district councils, county councils, police authorities and NHS trusts. Organisations such as city and district councils are often responsible for administering electricity, gas, oil and biomass on multiple sites so maintaining a clear evidence pack and audit trail is vital.
Perth and Kinross Council wanted to avoid the financial risks and penalties involved with non-compliance and needed to deliver more than just their existing monitoring and targeting (M&T) software.
Gordon Dick, Energy Officer at Perth and Kinross Council, said: “We needed to deliver data, registration and compliance for CRC so finding the right solution was critical. By considering an application that was designed specifically for CRC we decided that Carbon Counter could complement our existing M&T software. Filtering out relevant information means we can create evidence folders and reports.”
The fact remains that CRC is a legal obligation for eligible organisations so it is important that participants continue to record and deliver the necessary data as efficiently as possible. It should also be remembered that CRC could still yield financial rewards. Performance in the CRC league tables will impact on reputation and in the long term this can have a positive impact on the bottom line. What’s more, identifying areas of high carbon use can help to identify potential areas where cost-savings can be made. Despite the changes to the scheme there are still clear benefits available to those organisations sharp enough to maximise the opportunities ahead.
To find out more about Landmark’s Carbon Counter service, visit
www.carboncounter.co.uk
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