2 new legislations has recently been introduced by the government to help combat climate change by achieving reduction in co2 – through the Carbon Reduction Commitment and the EPBD (Energy Performance of Building Directive).
What is the Carbon Reduction Commitment?
The Carbon Reduction Commitment (CRC) is an innovative climate change and energy saving scheme for the UK. It will encourage improvements in energy efficiency which can save organisations money. The scheme has been designed to generate a shift in awareness in large organisations especially at senior level, and to drive changes in behavior and infrastructure.
The scheme is also a central part of the UK’s strategy for controlling our carbon dioxide (CO2) emissions. It will tackle CO2 emissions not already covered by Climate Change Agreements and the EU Emissions Trading System. This will help reduce the country’s carbon footprint to deliver the ambitious emissions reduction targets set in the Government’s Climate Change Act. The scheme will start in April 2010.
The scheme is a UK-wide scheme. Policy has been developed in partnership by the Department of Energy and Climate Change (DECC) and the Scottish Government, the Welsh Assembly Government and the Department of Environment Northern Ireland.
Emissions trading schemes such as CRC provide a financial incentive to reduce emissions by placing a price on carbon emissions. In the case of CRC, participants have to purchase allowances equivalent to their emissions each year. The overall emissions reduction target is achieved by means of a cap on the total number of allowances available to the group of participants. However, within that overall limit, individual participants can determine the most cost-effective means to reduce their emissions. Overall the scheme will achieve emissions reductions of at least 4MtCO2 per year by 2020.
It is estimated that the benefit to participants will be around £1 billion by 2020. This will result from energy efficiency measures encouraged by this scheme. Revenue recycled back to participants from the sale of allowances each year will also include a bonus for the best performers. In addition to financial incentives, the scheme will provide a reputational incentive as well. Participants will be ranked according to their performance in a league table. This will then be made available for public scrutiny.
The combination of financial and reputational incentives will encourage organisations to develop energy management strategies and also generate awareness of emissions at a senior level. As organisations will have to monitor their emissions it will also lead to improved understanding of both energy consumption and opportunities for energy efficiency.
Around 20,000 organisations may be affected by the scheme and yours could be one of them. Failure to comply with your obligations will result in penalties including monetary fines.
What is the EPBD (Energy Performance of Building Directive)?
The (EU) European Energy Performance of Buildings Directive (EPBD) Directive Implementation Advisory Group (DIAG) was established in 2002 to advise the UK Government on the energy performance of buildings and the implementation of the European Energy Building Performance Directive.
The European Commission and Parliament are considering recasting the EPBD to introduce a number of key changes:-
- DEC to be displayed in buildings larger than 250m² that are occupied by a public authority
- EPC to be displayed in commercial buildings larger than 250m² that (a) are frequently visited by public and (b) where an EPC has previously been produced on the sale, rent or construction of that building
- The energy performance of existing buildings of any size that undergoes major renovations to be upgraded in order to meet minimum energy performance requirements. Currently, there is a threshold of 1,000m²
- Minimum energy performance requirements to be set in respect of technical building systems, e.g. boilers, air-conditioning units etc
- Commission to establish common principles for definition of low and zero carbon (LZC) buildings. The definition of LZC to be determined by Member States but it must be in accordance with the principles set by the commission
- new and refurbished dwellings
- new and refurbished commercial buildings
- buildings occupied by public authorities
- Member States to aim for cost optimal levels of energy performance of their buildings using a methodology developed by the Commission