CRC changes are no licence for inaction

Here Environ principal Debra Hobbs explains the implications for the healthcare estate, explains the steps organisations obligated under the scheme need to take over the next 3-4 years, and cautions them against “hitting the pause button”.

There is no doubt that the Government’s October 2010 Comprehensive Spending Review gave businesses and organisations in every sector across the UK food for thought. Hidden away in the supporting material – rather than being part of the initial announcement – was an unexpected update on the Carbon Reduction Commitment, changing the scheme’s structure: “The CRC Energy Efficiency scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011. Revenues from allowance sales totalling £1 billion a year by 2014-15 will be used to support the public finances, including spending on the environment, rather than recycled to participants. Further decisions on allowance sales are a matter for the Budget process.” (2.108) This update has led lots of UK organisations, including those in the healthcare sector, to hit the pause button on their CRC compliance work. This is a mistake that could quickly cost each organisation well over £100,000 in penalties, as well as creating additional work in the long term. We all welcome simplification of course, and the government is actively seeking feedback on supply rules, qualification criteria, scheme parameters, and the issue of allowance sales. However, the uncertainty inherent in the statement has had people halting their compilation of CRC reports at a time when it is more important than ever to push through their compliance because of the potential cost implications.

‘Talking in certainties’