This year sees the introduction of the Carbon Reduction Commitment (CRC) – a UK-wide initiative to encourage large public and private bodies which are non-intensive energy users e.g. office based - to reduce their carbon dioxide emissions. Essentially it will require participants to record all of their greenhouse gas emissions and then each year to purchase “carbon allowances” at a £ rate per tonne. The scheme is not a taxation regime. All of the money is held in a fund and at the year end a league table is published and the monies redistributed with those who have reduced their emissions receiving their money back with a bonus. Those who have made the least progress or failed to improve will simply receive nothing back.
The initial qualification is an annual electricity bill of around £1m using at least one meter on the half-hourly electricity market. It is expected that some 5,000 bodies will be within this parameter. In September 2009 all potential participants will receive a letter from the Department of Energy & Climate Change advising them of the need to register. All users using more than £0.5m of electricity with at least one half-hourly meter will also be required to submit returns – and this could extend to another 20,000 firms and public institutions.
Davis Langdon recognises that most of its larger clients will be affected and is accordingly launching a new advisory service. This can begin with initial assistance, if required, on compliance, taking early action to reduce the impact of the scheme, advice on carbon trading, and principally, moving towards the provision of a wide range of our services in helping to improve buildings performance.
Davis Langdon’s CRC service is comprehensive and will draw upon our wide range of expertise:
- Building Surveying
- Energy Performance assessment
- Low carbon strategy development
- Capital Allowances
- Grants & Remediation
- Specification writing
- Engineering services and building cost consultancy
- Cost & Project Management
- FM consultancy
How big is it? Tesco calculate their annual CRC cost will be £40m and the total cost to all participants around £660,000,000.
For further information on CRC click here
