CRC Proven to Drive Energy Efficiency Investment by Businesses
Thursday, August 27, 2015
Latest figures from the Department of Energy and Climate Change (DECC) indicate that the Carbon Reduction Commitment Energy Efficiency Scheme has driven energy efficiency investments in more than half of obligated businesses.
The research found that almost all obligated businesses within the Carbon Reduction Commitment (CRC) were taking some form of action to address energy efficiency, with more than 70% of Energy Managers reporting that their organisation’s level of action on energy efficiency had increased since the scheme was introduced in 2010.
The research also showed that rising energy prices were the main driver for organisations investing in measures to improve energy efficiency (80.5%). This was followed by an increase in board-level priority (67.4%) and a desire to improve or protect reputation (64.2%). The CRC scheme was ranked fourth, with 56% citing it as a key factor.
The research also showed that the most common forms of energy efficiency measures taken by businesses included the installation of energy efficient technologies, improved energy monitoring, energy audits and increasing staff awareness through training and education.
The CRC aims to encourage large public and private sector organisations in the UK to reduce their carbon emissions through improved energy efficiency. It is a mandatory cap and trade scheme for qualifying organisations that requires the self-certification of emissions which are backed up by independent compliance audits.
The Government announced in the Budget in March 2015 that it is to carry out a review of business energy efficiency taxes, including the CRC and the Climate Change Levy, and how they interact with other business energy efficiency policies and regulations. A consultation on this is due to be launched in Autumn 2015.