CRC to take effect in under a month

News Article - 11 March 2010
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The government recently urged businesses to ensure sufficient preparation is undertaken in advance of the Carbon Reduction Commitment (CRC) coming into effect at the beginning of April. The CRC is designed to help the government meet its aggressive carbon reduction targets, and challenge the most carbon-intensive businesses to cut pollution levels.

Under the terms of the CRC, companies that operate half-hour electricity meters - an estimated 20,000 companies and public sector entities - will have to register with the Environment Agency. Approximately 5000 of the top polluters, or those who use more than 6,000 MWh of electricity a year, will need to submit comprehensive annual reports detailing levels of carbon output.

The data submitted to governments will be used to compile a national list of the worst polluters, says the Department of Energy and Climate Change. The prospect of low positions in this table may push larger companies into investing heavily in carbon reduction schemes, which according to commentators is one of the best ways to combat climate change.

Yet experts in the field have expressed concern that many businesses have not undertaken sufficient preparation to cope with the demands of the CRC. One poll suggests that 54% of businesses are unsure if they will meet the initial 6,000MWh threshold. Those that do meet the threshold are required to start tracking carbon output by April 1^st.

Even though it is only the largest businesses currently being targeted by the CRC, the demands are likely to put a significant strain on resources and many companies are expected to struggle to cope. As the CRC's remit extends, smaller firms will come under pressure to contribute to carbon reduction plans, particularly businesses in supply chains. Firms must ensure adequate preparation is undertaken and develop a robust infrastructure so that the change associated with the CRC will not overwhelm capacity.

Carbon reporting functionality is an essential first step for all businesses to take. The ability to analyse carbon output on an individual, departmental and activity level will become essential as the CRC puts pressure on firms to reduce carbon output. Without accurate data, resources cannot be targeted to ensure carbon reduction policies achieve maximum results. As eco-friendliness becomes more important to a company's reputation, carbon reduction policies must reduce output enough to ensure the company is seen as contributing sufficiently to the low carbon economy. If this cannot be shown, reputation may suffer as a result.

For more information on how Access' software solutions can help monitor and track carbon output, call 0845 345 3300.

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