Queen's speech includes green rules for enterprises

Pressure on IT departments to reduce their power consumption is set to intensify after the government unveiled plans for a new Climate Change Bill as part of the Queen's Speech.

The proposed law would set a statutory commitment to cut CO2 emissions by 60 percent on 1990 levels by 2050, while five-year targets are likely to be introduced to ensure progress is made. An independent Carbon Committee will be set up to monitor emission reductions and recommend policy changes to government.

Under the legislation the government will also gain new "enabling powers" allowing it to extend the existing EU carbon trading scheme to cover industries currently unaffected by the programme. This would put a price on carbon pollution and could allow firms that reduce carbon emissions to sell their savings in the form of carbon credits.

The proposed targets could become tougher still, with both the Conservatives and Liberal Democrats saying they will oppose the bill in favour of a version proposing annual rolling targets for CO2 reduction. Some Labour backbench rebels are expected to vote with them and a government victory for the current draft is not guaranteed.

Experts agreed that while precise details on how the government will meet its target remain hazy the new bill will have a large impact on firms' IT departments. "We're talking about a 60 percent reduction in carbon emissions on a 1990 base level that we're well passed," said Richard Barrington, head of public policy at Sun Microsystems. "To achieve that is going to impact everything that consumes energy and IT needs to realise that IT equipment and associated air conditioning are very significant producers of CO2."

The new bill will provide the impetus for increasingly stringent environmental regulations, according to Nigel Montgomery of analyst AMR Research. "The government is not going to be able to hit these targets without legislation and companies are going to be forced to make changes," he said.

Barrington added that legislation governing the energy efficiency of electrical equipment, increased taxation on carbon-intensive products and new rules for public-sector IT procurement are all now inevitable within the next few years. He added that it is therefore in the interest of IT directors to act now to reduce the carbon footprint of their equipment.

"This is a real opportunity for IT to not just deliver cost savings in the form of energy bills but also reposition itself as a force for social good rather than a nerdy operational support role," he argued.

Montgomery recommended that firms appoint a senior executive with direct responsibility for both legal compliance and environmental issues and also look to deploy systems that will help them monitor their progress in cutting carbon emissions.

But Rakesh Kumar of analysts Gartner said that while the bill provided a " warning shot" to CIO's it was only the "smart five to 10 percent" that are likely to make the proactive changes to their infrastructure needed to reduce their carbon footprint. He said that without increased board or financial pressure many CIOs are likely to ignore the problem.

Separately, focus on video conferencing and other communication tools that help firms reduce corporate travel is also likely to increase after the government announced a draft road transport bill that will increase its powers to introduce toll roads and controversial road pricing schemes.

Pressure on London-based firms to improve their environmental record is also set to intensify as the result of a new Greater London Authority Bill that will hand more power to Mayor Ken Livingstone, including responsibility for tackling climate change. Livingstone has already been particularly vocal about the need to reduce emissions and introduced the capital's congestion charge scheme.