1 April 2010 | Luca Del Buono
Carbon, Climate Change, Energy, Legislation, Europe

 

The United Kingdom's Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) begins Thursday. The plan will prevent 4 million tonnes of British greenhouse gases from entering the atmosphere and save companies £1 billion on energy bills according to Reuters.

New regulations require larger companies to monitor and report energy consumption to the government. By 2011, companies will also need to buy carbon credits although they are exempt from doing so this year. Non-compliant companies will be fined steeply for conduct breaches beginning at £5,000 minimums.

However, the problem with the programme insofar relates to cost and communication. Many businesses have questioned whether the cost will justify the CO2 mitigation, and are unsure how to go about complying with the CRCEES programme. Businesses lack the resources to understand how to report their emissions or purchase carbon credits.

Companies that spend £500,000 per year on energy will have to register with the UK Environment Agency by September 2010. CRCEES also includes feed-in tariffs for renewable energy. The Department of Energy and Climate (DECC) is optimistic about the programme and expects good results. Secretary of State for Energy and Climate Change, Ed Miliband said, "From today the rewards for businesses and householders who act to cut their carbon emissions really start to pay off. It's no longer simply about doing the right thing for the environment, it's now a sure-fire financial investment."

CRCEES demonstrates a step forward in Green Business policies and shows how high energy efficiency has become on the agenda's of governments and business. The new system is part of the UK governments attempt to reduce CO2 emissions 34% of 1990 levels by 2020.

Author: Michael Good | Climate Change

Image Provided by:
Kevin Zollman | Flickr

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