An additional 25,000 UK businesses could face new carbon legislation however not all will get caught out on April Fool’s Day, claims Sabien Technology

Industry comment

Published: 22 March

Author: Alan O'Brien

Type: Industry comment

Year: 2010

  • 1st  April businesses face carbon reduction legislation
  • UK businesses could face a series of fines if non compliant
  • Scheme could deliver carbon savings two and half time higher than first anticipated (1)

The Government’s Carbon Reduction Commitment (CRC) Energy Efficiency Scheme** comes into effect Thursday, 1 April 2010.

Around 25,000 UK businesses , are thought to be now included in the Carbon Reduction Commitment Energy Efficiency scheme – higher than the 5,000 initially anticipated, according to Business Link.

The CRC is designed to improve energy efficiency in businesses, effectively by putting a price on emissions from energy use. The scheme is central to delivering the UK’s commitment to reduce carbon emissions by 80% by 2050.

“It was originally estimated that around 5,000 firms qualified for this new legislation and its inevitable cost impact – but the latest figures  suggest the number of organisations affected could be as high as 25,000,” said Sabien CEO Alan O’Brien.

“This is significantly higher than was first anticipated however, from our experience the majority of UK companies and clients we speak to have been preparing over the last 2 years for the scheme and take their responsibility and commitment very seriously” he added.

“With the 1st April now fast approaching, organisations are now focusing their attentions on ensuring they’re fit and ready to adhere to the schemes requirements and to step up the pace of their energy reduction initiatives,” said O’Brien.

Besides the financial cost of the CRC scheme, now that consumers are increasingly questioning businesses’ environmentally-friendly credentials, the reputational risk of being an organisation at the bottom of the carbon league tables’ just play’s into the hands of those competitors who have outperformed their peers,” he added.

Besides the increased number of participants the carbon savings benefits could double. The department for energy and climate change (DECC) initially claimed the scheme would cut carbon emissions by 4.4 million tonnes a year by 2020. However the Environment Agency, which will administer the CRC, now estimates the savings to be 11.6 million tonnes of carbon a year.

As providers of energy efficiency technology for both public and private sectors, Sabien is ideally placed to help mitigate the impacts businesses face from the new legislation and contribute to its carbon objectives.

“Organisations are now aware that technology already exists to help them significantly reduce their energy consumption and benefit from real cost savings,” O’Brien continued.

The value of Sabien’s technology has already been recognised by many leading blue chip companies including British Gas, Balfour Beatty, O2, Serco, Lloyds Banking Group, The Royal Bank of Scotland Group, Aviva and Virgin Media - which have all either rolled out or have commenced installations of Sabien’s M2G technology across their estate portfolios.

Sabien solutions at a glance:

  • Sabien’s patented M2G boiler load optimisation control delivers proven reductions in energy costs and CO2 emissions of between 15% and 25%
  • M2G fully integrates and complements existing Building Management Systems (BMS) and existing controls
  • Companies using M2G include BT, Royal Bank of Scotland, Lloyds Banking Group, O2, Aviva, Vodafone and the Environment Agency
  • Alliance agreements signed with major UK service providers to distribute M2G include British Gas, Balfour Beatty, Serco and Jones Lang LaSalle
  • Approved supplier to London Green500 initiative

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(1) Estimate by Environment Agency