Large firms urged to increase energy efficiency now in light of new carbon tax announced by the Government

This article is brought to you by Retail Technology Review: Large firms urged to increase energy efficiency now in light of new carbon tax announced by the Government.

Large and medium organisations that held off implementing innovative energy efficiency schemes to maximise their CRC league table performance should put these in place right now, according to Carbon Statement, a carbon management company specialised in helping organisations and the people within them reduce carbon emissions.

Managing Director, Mark Chapman of Carbon Statement says: "Some of our blue chip clients have been holding back on schemes we suggested to improve their energy efficiency in order to maximise their league table position.  Now, with some pub chains and retailers having to find an extra 2 million a year for the carbon tax, we're being called on to introduce smart innovations to measure and reduce carbon emissions through structural and behavioural change to reduce organisations' liability in 2012."

While implementing behavioural change such as a 'turn the lights off' policy delivers small reductions in energy consumption, structural change is needed to achieve greater reductions.  Impressive results, such as a 50% reduction in energy consumption for lighting, have already been achieved.  Structural change can be harder for organisations to implement successfully, as it requires full employee and stakeholder engagement, as well as capital outlay.  

Mark Chapman added: "Structural change almost always makes financial sense, it's just the length of the payback period and the practicality of the change. As energy costs are rising, if companies want to grow they'll have to dramatically cut just to keep energy bills even. By making bold changes organisations can not only save the money they would have spent, but also reduce their exposure under the CRC and keep the extra profit they would have had to outlay in either case."       

Whilst removing the recycling payment has taken away the uncertainty around the money companies will receive from reducing emissions, it will take 1 billion annually from UK companies that could have been spent on emission reduction projects rather than paying down the national debt.

The new carbon tax on business which forces 4000 businesses and public sector organisations to purchase carbon allowances based on how much energy they use was announced at the time of the Spending Review by Department of Energy and Climate Control. Carbon Statement comments that the impact is a total rewrite of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme where the Government no longer intends to reimburse the money received from the carbon tax, regardless of a company's performance in reducing emissions. The scheme is part of the European commitment to make 20% reductions in CO2 emissions by 2020.