Partner Article

Majority of companies ?unprepared? for carbon reduction scheme

A simulation of new carbon cutting legislation has highlighted that the majority of organisations are unprepared for the consequences of the new rules.

Those organisations affected will struggle to collect and verify their energy data risking unnecessary costs, penalties and, in extreme cases, face criminal prosecution for non-compliance.

In advance of the new legislation, regional development agency One North East commissioned energy consultancy TNEI Services to run a 12-month simulation of the CRC Scheme to give organisations in the region a head start and allow them to get CRC-ready.

The CRC comes into effect in April next year with qualifying organisations required to buy carbon allowances to cover the emissions they produce.

One North East Leadership Specialist, Kate Hatton said: “The CRC presents major challenges for organisations with high-energy bills. By taking part in our simulation, organisations can gain practical experience of the legislation, get access to free expert advice and pro-actively cut their carbon dioxide emissions.”

The simulation is highlighting issues that the business community needs to address, the likely pitfalls and how they can be avoided.

According to the trial, a significant number of organisations are still unprepared for the rigours of monitoring and reporting energy use and do not have the ‘CRC Team’ in place to both plan and deliver the energy savings required, or with the purchasing power to secure carbon allowances at a reasonable cost.

Helen Nisbet, Project Manager for the CRC Simulation at TNEI said: “The companies participating in this simulation have shown a foresight and understanding that this legislation needs to be considered seriously. Credit should be given to them for preparing for the full impact of the CRC and their early action will stand them in good stead for the real thing.”

For more information visit www.onenortheast.co.uk/carbonreduction.

This was posted in Bdaily's Members' News section by Ruth Mitchell .