CRC will ‘fail to cut emissions’, report warns

The Carbon Reduction Commitment is unlikely to cut carbon emissions before 2013 as companies and other organisations struggle to get to grips with it.

According to business research firm Verdantix, 80% of organisations will fail to reduce emissions during phase one of the CRC, which is set to run from April 2010 to 2013.

Lack of knowledge among companies about their own energy consumption and use and the general trend of increasing emissions, will make it difficult for organisations to start making cuts right at the beginning of the scheme, according to analysis by Verdantix.

Director David Metcalfe told edie that the current economic slowdown will also pose a problem for many organisations, as 2009 is the year when baseline measurements for cutting emissions will be taken.

“With the way energy prices have gone up and the economic has gone down, probably 2009 is going to be the year when a lot of firms cut back on energy usage.

“But most economists are forecasting better growth in 2010 so we will end up with a very low baseline in 2009.”

He warned that as 2009 will be the baseline year, companies will have to start working on meeting CRC requirements as soon as possible. He added: “April 2009 is effectively the start date.”

Small companies and those with multiple sites that will be covered by the CRC are the ones that are most at risk of falling foul of the regulations, Mr Metcalfe said.

He advised companies to start appointing people who will take charge of all areas of the business covered by the CRC, and being collecting data on energy use.

“You have got to create that kind of expert team to start with and they have to work out what information they have at the moment,” he told edie.

The report also advised organisations to budget for the costs of CRC work, and to prepare for a tougher regime from 2013.

However, it warned that 10% of participants will not manage to comply with the complex scheme.

Kate Martin

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