Sunday, December 27, 2009

CRC Energy Efficiency Scheme - Confusion Remains


By Daniel Stouffer

The Copenhagen meeting of major nations from around the world was touted as one of the most significant summits in our memory. Luminaries such as Britain's prime minister were particularly vocal in outlining these feelings, perhaps referring to his own government's implementation of the CRC Energy Efficiency Scheme. There's no longer any room for politics in this situation as action certainly needs to be taken, 5000 businesses in the UK will be impacted very soon and there is still a good degree of confusion.

There's a lot of trepidation surrounding the introduction of the CRC Energy Efficiency Scheme. Although the major industries in the country have been heavily regulated for some time, the European trading scheme in question did not cover many of the service sector and public sector organizations now affected. Legislation is going to reach much further into the community.

The centerpiece of the project is a "cap and trade" trading scheme which forces heavier polluters to cut back on energy needs and emissions or be faced with stiff penalties. The CRC Energy Efficiency Scheme is not designed to be heavy hitting until the year 2013, but now is the time to arrange a position and start preparing accordingly before it all comes together.

Is the CRC Energy Efficiency Scheme too complex and cumbersome? Many think so and believe that even though only 5000 companies are affected right now, this is just the tip of the iceberg. It is expected that a more complex and a broader program will be unveiled.

While the scheme certainly represents a challenge to organizations, it should also be viewed as an opportunity, enabling cost savings and efficiencies which might not otherwise have been achieved. After all, by driving down energy consumption and consequent emissions, the business is guaranteed to realize good savings.

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.

The UK government is being somewhat cautious as they roll out their energy efficiency scheme, but those organizations who do not get on board right now or fail to comprehend what will happen in the future will certainly be worse off than those that do. People are generally afraid of change as they see it as a threat, potentially putting their organizations at a competitive disadvantage.

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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