27 July 2010 | Luca Del Buono
Carbon, Energy, Legislation, Europe

 

Around 20, 000 businesses in the UK will be affected by the CRC Energy Efficiency Scheme, which was launched in April. Companies must commit to the scheme by 30th September; 5000 of these companies must complete full registration, whereas 15, 000 lower energy users must declare information proving they are ineligible for the scheme. Recent analysis by WSP Environment and Energy shows that 7, 500 businesses risk missing the September deadline. WSP Environment & Energy's Director, David Symons, states:

"Despite the initial clamour around CRC, many companies remain unsure about the extent of their obligations, and our forecasts show that there will be a significant shortfall in registrations."

The CRC Energy Efficiency Scheme is the UK's mandatory carbon emissions reduction plan. It aims to improve the energy efficiency of large private and public sector organisations and will reward successful companies financially. The longer-term benefit of this scheme is its aim to reach the 80% greenhouse gas reduction pledge for 2050 and ensure the UK's energy security.

Working as a cap and trade scheme a price will be put on emissions encouraging high energy using companies to become more energy efficient and will hopefully allow participants to make savings on their energy consumption as they conform to the scheme. All of the money made from the companies will be reinvested into the scheme as financial rewards for excelling.

It is evident that a lack of awareness among participants is a problem that needs to be solved and could mean that thousands fail to register in time for the deadline. In June less than10% of eligible companies has signed up according to the Environment Agency. The concern is that around 40% of companies are unaware of their obligation to sign up and will miss the deadline through this lack of engagement. There are potential fines for failure to meet deadlines; £500 for low energy users and £5000 plus additional smaller fines for heavy energy users.

A report undertaken by green IT consultancy Externus, has revealed that 53% of the 5000 high-energy using firms have admitted to being unaware of the mandatory CRC Energy Efficiency Scheme. There is talk however, of the need to launch an awareness campaign before going forward with this. It is also hoped that there will be an influx of last minute registrations as companies will potentially be seeking legal advice and organising their affairs beforehand.

The scheme is vital for progress towards the UK's emissions targets. It is important for companies to reduce the emissions that they are responsible for in order to hit 2050 pledges. But in order for the scheme to have an impact and to make a difference to the energy management of companies a better awareness of the scheme needs to be realised in order for registration to be accelerated.
 

Author: Rachael Bristow | Climate Action

Image: PhotoDu.de | Flickr
 

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