Take a Positive Approach to Energy; Nick Ridley, Director of Portfolio Asset Management at DTZ in Birmingham, Addresses a Local Manufacturer Getting Hot under the Collar over Climate Change
Byline: Nick Ridley
Q How will the introduction of new legislation including the Carbon Reduction Commitment and the Government's drive for businesses to reduce energy consumption affect my business? As a Midlands manufacturer with over 150,000 sq ft of property of varying age, I'm keen to do my bit but I need to watch my costs.
From April this year the Car -r bon Reduction Commitment AAAEnergy Efficiency Scheme, which is being introduced over the next few years, re -quires organisations using over 6,000 MW of electricity annually (roughly pounds 500,000) to participate in a mandatory trading scheme.
It is a complex scheme, but in summary organisations will have to monitor carbon emissions, buy carbon allowances, report emissions and surrender allowances, with the money used to purchase allowances refunded to participants.
However, organisations able to demonstrate carbon reductions will prof-f it by receiving higher rebates; those performing poorly will receive less back and lose out. At a basic level, poor data collection will lead to incorrect predictions which will cost participating businesses significantly.
However, if you take a positive approach to new legislation your business can not only save money but also reduce energy consumption and CO2 emissions.
Your first step is to understand fully your carbon footprint before putting together an effective emissions reduction plan - and it may be helpful to seek specialist advice at this stage. Evidence shows that the most successful organisa-a tions are those that develop coordinated plans which ensure focused delivery of improvements. Such plans cover broad objectives; targets; timescales; responsibilities; methods for monitoring and evaluations. This naturally requires a degree of investment in both time and expertise, but will pay off in the long run. …