Energy rules may end 'on-all-night' displays

News Article - 17 February 2010
Category: Environment

The Environment Agency is predicting the end of ‘on-all-night’ shop displays under new rules imposed by the UK’s Carbon Reduction Commitment (CRC). From April 2010, firms that meet an energy threshold will have to register for the CRC and, from next year, will start paying fines if acceptable levels of energy output are not maintained.

The CRC is part of the government’s plans to reduce carbon levels by 2050 by 80% compared to 1990. Major supermarkets and high street retailers will participate in the scheme, with 5000 businesses initially meeting the energy threshold of 6000 MWh. This is equivalent to an annual bill of £500,000.

In addition to ‘on-all-night’ shop displays, the use of open doors to entice customers may soon be banned.

Following registration with the CRC, firms will be expected to accurately record their carbon output and buy allowances for each tonne of carbon emitted. The Environmental Agency will publish an annual report of the best and worst polluters; those at the top of the report will receive financial incentives.

In recent months the climate change agenda has been marred by controversy over the science behind the issues. Over the last week it emerged the United Nations Intergovernmental Panel on Climate Change may have exaggerated claims regarding the melting of the Himalayan glaciers. However, these issues are not expected to slow down the rate of progression.

As the UK’s aggressive carbon reduction targets start to affect the largest polluters, small and medium sized businesses may wonder if compliance regulations will trickle down the supply chain. Although it is the largest providers currently being targeted, the government is expected to look to mid-tier companies to increase commitments to climate change in order to ensure the country is on track to meet carbon reduction targets.

Access has been working to help UK-based mid-market organisations develop the necessary infrastructure to cope with rapid developments in the climate change arena. Reporting carbon emissions is one of the most important steps any business can take: as the government pioneers an incentive-based approach to carbon reduction, businesses will need to actively gauge how successful company carbon reduction investments have been in order to qualify for benefits.

For more information on Access’ Accounting for Carbon Emissions solution, please call 0845 345 3300.

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