The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) has been looming for months, and the 30 September deadline has passed.

But is it a good idea? How should businesses approach the new legislation? And can Local Authorities reduce the carbon emissions of schools and others they are responsible for?

Well, in the first instance, all who are eligible must get through the lengthy registration process.

Slow uptake of registrations for CRC

At present there is still a shortfall in the number of organisations that have registered for the CRC.

If you still need to register, we recommend that you do this as soon as you can. Those that fail to register by the deadline will face a £5,000 fine, plus a daily £500 fine for up to 80 days. And a list of those that fail to register may also be published.

If a supposedly ‘green’ organisation gets publicity for not putting their name down, it would be an embarrassing start for those responsible. If you want to find out if you should be registering, and how, read more about who needs to comply.

We've registered. Now what?

You should take early action, or it won't count. In the first year of the CRC (April 2010 - March 2010) the Early Action Metric is the only thing that that will determine where you appear in the Performance League Table.

This ranking is of course important for your organisation’s reputation (are you above or below your competitors?). But it could also have immediate financial implications too, both good and bad.

The current plan is for penalties to be applied to those who don’t do well. The money raised will then be used to reward those who have done better. There is some skepticism as to whether this will really go ahead, but is it a risk worth taking?

Fifty percent of the Early Action Metric will be determined by achieving the Carbon Trust standard, or equivalent. The other 50% is the percentage of energy supplies that have been received, during this period, through voluntary Automatic Meter Reading (AMR).

So, you only gain credit for the AMR from the point of installation. Those that already have or will install AMR well before March 2011 will clearly benefit. If you don’t have one, we recommend you change that.

For longer term ideas and to help you excel we have more information for businesses and local authorities. Follow the links below to your area of interest.

How should businesses approach the Carbon Reduction Commitment?

How should local authorities approach the Carbon Reduction Commitment?

But why is it so complicated?

Many people within, outside and around government are asking why the CRC has to be so complicated. Nobody actually has the answer although there is likely to be much finger-pointing.

But the wonderful thing about the CRC is the profile it is giving to carbon emissions within large organisations. The sad thing is that this profile is being muddied through complex rules, systems and unintended consequences. How will it work on an international level? Why isn’t travel included? And what about overall product life cycles? 

If public sector organisations do badly, will they be fined? And will money taken from them end up as bonuses to private sector organisations who are doing a good job? That would be uncomfortable, to say the least, for all involved and businesses should think now about how they will help their own local communities ensure this doesn’t happen. Read more about how we work in the community.

Surely a straightforward carbon tax have been a better idea? What do you think? Contact us. 

Trewin Restorick, CEO of Global Action Plan gives us his views on the CRC.

Contact us

Contact us today to find out more.

• Email this page