carbon
reduction
CHANGING
TIMES
Andrew Frost looks at the implications of the new Carbon Reduction
Commitment, and at ways clubs can gear up for it – and save money in the process
F
ollowing the 2006 Stern The CRC will initially be compulsory for Six months after buying these
Report’s warning of impending organisations that consume over 6,000 allowances, the money will be given
environmental disaster, MWh of half-hourly metered electricity back – but with a bonus added, or a
climate change has risen on from January–December 2008. At today’s penalty deducted, depending on how
the agenda of all legislators. prices, that’s equivalent to an annual much energy was saved in the previous
In the UK, the recent Climate Change energy bill of approximately £500,000. fi nancial year. This bonus or penalty
Act set stringent emissions targets for The legislation covers both the public could be as large as half of the money
new-build domestic and non-domestic and private sectors and will impact at spent buying allowances, depending on
buildings to help the UK reduce its least 5,000 organisations, in the process performance in terms of reducing energy
greenhouse gas emissions by 34 per affecting 25 per cent of business sector use and emissions compared with other
cent by 2020. And next year will see the emissions; multi-site leisure operators organisations covered by the CRC.
introduction of the Carbon Reduction will certainly be in the fi ring line. With an annual CRC league
Commitment (CRC), which will affect Each year, these organisations will performance table, your brand will
every organisation spending over have to surrender certain allowances also be in the spotlight, with the best-
£500,000 a year on gas and electricity. covering the total tonnage of CO
2
performing organisations benefi ting
emitted the previous fi nancial year, with from recognition of their achievements.
the legislative landscape one allowance covering one tonne of But the ultimate benefi t of the carbon
Due to start in April 2010, the CRC CO
2
. Companies will buy most of their reduction produced by the CRC will be
aims to cut carbon dioxide emissions allowances from the government in reduced energy costs.
caused by larger ‘low energy intensive’ advance of producing emissions, initially at
organisations burning fossil fuels directly a cost £12 a tonne. Then, from 2013, they does the CRC affect you?
in boilers and ovens or indirectly in will be sold through auction. The cost With the scheme due to start in eight
power stations. could run into millions of pounds a year. months’ time (see timescale, p50),
48 Read Health Club Management online september 2009 © cybertrek 2009
healthclubmanagement.co.uk/digital
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