Slashing energy use:
Carbon reduction commitment to save businesses £1 billion by 2020
DEPARTMENT OF ENERGY
AND CLIMATE CHANGE News Release issued by COI News Distribution
Service. 12 March 2009
Hotels, banks,
schools, local authorities and around 5,000 other large
organisations could all be slashing their energy bills and carbon
emissions as part of a new government initiative aimed at boosting
energy efficiency and tackling climate change.
A new guide is published today by the Department of Energy and
Climate Change to provide a helping hand to business to prepare
for the introduction of the Carbon Reduction Commitment, which
will begin in April 2010. The guide establishes who is covered by
the scheme and guides the reader step-by-step through what they
need to do to take part in the scheme.
Energy and Climate Change Minister, Joan Ruddock, said:
"Cutting back on energy use and becoming more energy
efficient makes economic sense for firms at the best of times, but
it's even more important now given the difficult business environment.
"By taking measures to improve energy efficiency, businesses
can slash their energy costs. The Carbon Reduction Commitment
could help business save a total of £1billion by 2020, whilst also
helping them play their part in the fight against climate change.
"The Carbon Reduction Commitment is part of a package of
measures in the ground breaking Climate Change Act which will help
mobilise 5,000 organisations to save over 4 million tons of CO2 a
year, equivalent to taking a million cars off the road."
The revenue raised from the scheme will be recycled back to
participants on the basis of a league table -- so that those who
are making most improvements in energy efficiency will be
financially rewarded, and will receive recognition for their achievements.
The Government will further the roll out of the Carbon Reduction
Commitment by launching a consultation today on the regulations
which will form the basis of the initiative. Participating
organisations will have to register with the Environment Agency
who will administer the scheme.
The Government is already providing advice and financial
incentives to help businesses take practical steps to improve
their energy efficiency through the Carbon Trust and Climate
Change Agreements.
Home improvement retailer, B&Q, is one such business that is
already taking action to reduce their carbon footprint - Andy
Francis B&Q's Energy Manager says:
"As a responsible business, we wanted to demonstrate real
reductions in our energy use and help from the Carbon Trust made
this happen. Our new eco-store in Surrey uses a whole host of new
technologies - including a green roof, wind turbine and movement
sensitive lighting - generating around half the CO2 emissions of
similar sized store.
"This new initiative will give financial rewards for greener
businesses, so it makes both environmental and financial sense for
us to reduce our emissions." Climate Change Agreements are
voluntary agreements that lead to real reductions in CO2 emissions
across sectors ranging from steel to chemicals, aerospace to
brewing. Businesses which meet the targets under these agreements
receive an 80% reduction on their Climate Change Levy.
These reductions have already helped to save 16.4 million tonnes
of CO2, and estimated energy savings worth £1.5 billion and the
Government is today launching a consultation on the next stage of
the Climate Change Agreements Scheme.
Notes to editors
1. You can find the Carbon Reduction Commitment User Guide here:
http://www.defra.gov.uk/carbonreduction
2. You can take part in the Carbon Reduction Commitment
consultation here: http://decc.gov.uk/en/content/cms/consultations/open/open.aspx
3. You can take part in the Climate Change Agreements
consultation here: http://decc.gov.uk/en/content/cms/consultations/open/open.aspx
4. The aim of the Carbon Reduction Commitment is to help
businesses save money and cut their carbon emissions by reducing
their energy use. The Carbon Reduction Commitment (CRC) will be a
mandatory auction based emissions trading scheme for large
non-energy intensive business and public sector organisations,
delivering emissions reductions of 4.2 million tonnes of carbon
dioxide (MtC) per year by 2020. Government aims to begin the CRC
in April 2010, or as soon as possible thereafter, covering large
organisations using more than 6,000 MWh per year.
5. All businesses whether they are taking part in Climate Change
Agreements, the CRC, or are simply small businesses wishing to cut
their energy bills can find assistance through the Carbon Trust
which provides advice to business on what practical steps they can
take to improve energy efficiency, and also help to develop low
carbon products and services.
6. In its new 'One Million A Day' campaign, the Carbon
Trust is urging businesses of all sizes to join up and prioritise
actions to kick-start immediate energy savings, reduce carbon
emissions and make significant direct costs savings. For more
information on the Carbon Trust visit http://www.carbontrust.co.uk/
or call the Carbon Trust Advice Line on 0800 085 2005.
7. Climate Change Levy is an energy tax levied on most business
and public sector energy use. It is estimated that the CCL package
will save around 21MtCO2 per year by 2010 - equivalent to taking
around 5 million cars off the road. Energy intensive industries
may enter into Climate Change Agreements, which provide for a
discount of up to 80% from the Levy in return for meeting
challenging energy efficiency or carbon saving targets. At present
more than 50 sectors have CCAs.
8. Throughout April the Environment Agency will be running a
series of half day seminars for businesses in England and Wales.
These events will provide valuable information to businesses on
how CRC will affect them and what they need to do.
9. B&Q is the UK's leading home improvement and garden
centre retailer with 331 stores nationwide. Its new eco-store in
New Malden, Surrey opened at the end of January 2009. B&Q
received the Carbon Trust Standard in June 2008. The retailer has
partnered with sustainability experts, Bioregional, and has signed
up to the global 'One Planet Living' initiative. For
more information on the sustainability commitments B&Q has
made as part of 'One Planet Living' and for more
information on how the retailer is also helping its customers
reduce their home's carbon footprint visit http://www.diy.com/oneplanethome