CRC Energy Efficiency Scheme - Confusion Remains

Please note: The content of this article is in the process of being updated to reflect the latest CRC scheme design. Updated content will be posted shortly. The Department of Energy and Climate Change (DECC) website contains complete details on program requirements and design.

CRC Energy Efficiency Scheme Confuses Some

The meeting of nations in Copenhagen has been touted by some senior notables, including Britain's prime minister, as one of the most important and far-reaching summits of our time. Such comments point toward a great need for action, even as political differences rise once again to the fore. In Britain, the government has already initiated its own CRC Energy Efficiency Scheme, due to start impacting 5000 or so businesses in the very near future.

The CRC Energy Efficiency Scheme is still a subject of much confusion and trepidation. While the very largest industries in the country have been used to heavy regulation within a European trading scheme for some time, this new legislation is much wider reaching and calls for a significant commitment across a broad range of sectors.

The CRC Energy Efficiency Scheme is still a subject of much confusion and trepidation. While the very largest industries in the country have been used to heavy regulation within a European trading scheme for some time, this new legislation is much wider reaching and calls for a significant commitment across a broad range of sectors.

The program represents a "cap and trade" trading scheme, where heavier polluters will be significantly penalized, unless and until they can reduce their energy consumption. The more punitive measures associated with the CRC Energy Efficiency Scheme will not be seen until 2013, but businesses have to set the groundwork and establish their liabilities in the lead up to that time.

While the CRC Energy Efficiency Scheme has been criticized as being cumbersome and overly complex, it could be just the harbinger of things to come. While only 5000 or so organizations will be affected initially, few doubt that should the scheme be effective it could roll over to affect more.

Confusion on CRC Energy Efficiency Scheme Addressed

Organizations affected should look at the impositions of the scheme as a challenge, but one enabling them to achieve their own efficiencies and cost savings. At the very core of the idea is the need to drive down energy consumption and consequent emissions and to make a business more efficient from an overall point of view. The mechanism should be viewed as a means to an end.

Education is sure to be the biggest challenge facing organizations in the United Kingdom as the CRC Energy Efficiency Scheme looms. Surveys have shown that many organizations are still uncertain, do not understand the intricacies of the program and are far from being ready.

Word of Caution for Companies Who Want to Comply With the CRC Energy Efficiency Scheme

While the roll-out of the government's energy efficiency scheme in the UK can be classified as cautious, organizations that do not get on board right away or do not fully understand its implications will undoubtedly be worse off than those that are proactive and adoptive. Change is often looked at warily, with competitive disadvantage seen as a major stumbling block.

Early action by organizations should include certification by the Carbon Trust Standard. Through the installation of smart metering, organizations can achieve an early leadership position on the CRC Energy Efficiency Scheme's reputation league table. Credibility and reputation represent a very large part of the program.

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Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) software platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.

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Verisae helps measure, manage and reduce equipment and energy costs including the related business and environmental impacts of carbon emissions. The Sustainability Resource Planning (“SRP”) platform improves operational efficiency, protects brand integrity and helps ensure regulatory compliance for distributed enterprises across many industries. Verisae delivers a broad range of sustainability solutions to dozens of clients globally with thousands of daily users including an extended network of third-party suppliers. Verisae’s integrated sustainability platform actively tracks millions of assets across thousands of sites worldwide.