Business still ‘unprepared’ for CRC

New research has revealed the majority of organisations affected by the Carbon Reduction Commitment (CRC) will struggle with the burden created by the scheme.

A CRC simulation, run by regional development agency One North East, of what would happen when the legislation is implemented revealed companies would be exposed to a number of issues with the potential of fines.

The simulation, focused on the north east of England over a 12 month period, revealed organisations would struggle with ‘reporting and verifying’ energy use.

It also showed many do not have a CRC team in place to take on the day-to-day management of the project.

The project, only the second of its kind in the UK, aimed to reduce the risk of North East businesses being hit by fines.

One North East leadership specialist, Kate Hatton said: “What is clear is 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,

“Feedback from the first ‘trading day’ focused on the need to appoint a CRC Team to take joint responsibility for their organisation’s compliance spanning senior management, finance, energy management and possibly the legal department because of the serious liabilities involved in the CRC.

“One of the most serious issues was how to account for the money required to buy the carbon allowances, which in some cases would amount to nearly half a million pounds and recognising the impact this will have on an organisation’s cash flow and profitability.

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Luke Walsh

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