08 Nov 2009
It may have been criticised in some quarters for being overly complex and lax on energy-intensive firms, but the Carbon Reduction Commitment (CRC) is set to deliver greater than anticipated cuts in carbon emissions and energy bills, according to a major new report released today by the Environment Agency.
The study predicted that the carbon trading scheme, which comes into effect from April next year and requires 5,000 of the UK's largest businesses and public sector bodies to report their carbon emissions, has the potential to reduce carbon emissions by 11.6 million tonnes a year – more than double the 4.1 million tonnes of savings that were identified when the scheme was first announced in 2006.
It also calculates that the scheme will help to deliver more than £1bn worth of energy savings to the UK economy by 2020.
A spokeswoman for the Environment Agency said the research revealed that the scale of cost-effective energy savings that can be delivered at low cost, such as improved insulation and low-energy lighting systems, is greater than originally anticipated.
Speaking ahead of next week's Environment Agency annual conference, the watchdog's chairman Lord Chris Smith said the requirement for large firms to report on their energy use would encourage them to roll out energy-efficiency measures.
"From April 2010, when organisations need to start registering for the CRC, carbon reduction will become as much a part of corporate culture as health and safety," he said. "Carbon reduction needn't be complicated or expensive – for most organisations the cost of energy-saving measures will be more than offset by lower energy bills."
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WHAT DO YOU THINK? Add your comment
There could be bigger benefits for industry
Your report highlights carbon reduction and energy savings that the CRC may bring about but the Environment Agency?s estimate may underplay large organisations? and the IT industry's determination to minimise their environmental impacts and make energy savings. Rising energy costs and the rising prospect of carbon regulation country-by-country have made environmental issues a corporate necessity for large firms. However, forward-looking businesses don?t see this simply as a compliance issue. They are taking the opportunity to develop leaner, less energy-intensive business operations and make innovations in their service offerings at the same time. If there was widespread adoption of such innovations by UK businesses and government, they could potentially deliver savings above and beyond the Environment Agency?s forecast. As an example, CA is helping Tesco to identify and monitor carbon emissions on a global basis through tracking and monitoring software. http://tinyurl.com/yhe6edy It is particularly interesting that Tesco is acting on its stated goal of reducing carbon emissions from its global operations by at least 50% by 2020 (4,000 stores world-wide) - it is not waiting for the UK-focused requirements of the CRC. Carbon reduction strategies could well support innovation and not simply address compliance.
Posted by Colin Bannister, CA, 25 Nov 2009
great, but standards required...
encouraging news ? now what we need from the government, as an IT industry, is legislation ? or compulsory regulations, standards and metrics to measure the efficiency and reduce carbon emissions from IT equipment and we?ll be well on the way to achieving the low carbon economy we crave?
Posted by Phil Wilcock, 12 Nov 2009
Where is the Report?
Does anyone have a link to the report? I can't seem to find it on the EA website. Thanks
Posted by Greg, 09 Nov 2009