Contractors can deliver CRC solutions
M&E Sustainability hosted a seminar on the Carbon Reduction Commitment (CRC) at the HEVAR 2009 Exhibition in London.Chaired by Paul Reeve of the Electrical Contractors’ Association (ECA), the discussion considered the impact this new carbon cap and trading scheme would have on the 5,000 medium to large energy users expected to be included when it comes into effect next April and how that could translate into additional business opportunities for m&e firms.
Mr Reeve (centre) explained that the CRC was the financial mechanism the Government had decided was the best way to get users to “tackle their carbon footprint”. They will be required to pay for carbon permits from April 2011 and will receive that money back a year later plus or minus up to 10 per cent depending on how well they tackle their carbon emissions.Business organisations have lobbied hard against the scheme because they regard it as an unfair burden on businesses. They have had some success because the original plan was for organisations to pay for carbon credits from April 2010, but now they will only have to report their emissions in the first year and pay up in year two.
However, the scheme remains a key part of the Government’s carbon reduction strategy.
“This is a great opportunity for m&e contractors to work with major end users,” said Mr Reeve. “It is also a big opportunity for clients as the best performing ones will, eventually, be able to sell carbon credits and not just be forced to buy them. To get to that point they will need the expertise of specialist firms able to deliver low carbon solutions.”
HVCA head of technical and safety Bob Towse joined Mr Reeve and energy consultant Mike Malina on the seminar panel and suggested that m&e contractors should be looking to provide “a complete CRC service” including a system for measuring the client’s carbon footprint, a low carbon strategy for their buildings and training for their staff to help them manage the buildings properly.
Enforced
A number of delegates at the HEVAR session voiced concerns about the bureaucracy of the system and whether it would be properly enforced. Mr Malina felt that the Environment Agency, which is managing the CRC, did not carry sufficient threat to worry end users determined to ignore the scheme. He suggested that the Government should have put the Inland Revenue in charge.
However, the panel added that the financial penalties should be significant enough to get the attention of finance directors, who could drive change through their companies. Mr Reeve also pointed out that the CRC league table due to be published each year would put organisations’ carbon performance on public display for the first time in a “name and shame” exercise.
“Each end user included in the CRC has half-hourly energy meters and the information does not lie,” added Mr Malina (left). “The whole scheme is built around measuring energy use and then proving what you are doing to reduce it.“This is no different from any other energy management strategy where you must measure, analyse and act. Saving energy makes business sense because you will save money as well as meeting your CRC requirements,” he said.
The M&E Sustainability panel and seminar delegates agreed that the CRC could help to get end users more focused on energy efficiency.
“The market has been distorted by sales people peddling renewables,” said Mr Malina. “There are a lot of technology options, but to achieve CRC improvements end users will have to do the basics first. That means putting an energy hierarchy in place where they first reduce demand, then improving existing equipment before considering renewables.”