CRC to hit property sector
Top Carbon Reduction Commitment (CRC) expert, Paul Stepan has warned that new carbon reduction legislation is weighted strongly against the property sector.
Mr Stepan, from environmental consultancy, Camco, said: “The government’s well meaning process of policy simplification has left landlords in a poor position. Furthermore difficulties with regards to legally charging their tenants for CRC costs and the desire to recover administration and other associated expenses, compound the issue. These costs could become more significant once the financial impact of the scheme becomes clearer.”
The CRC, now called the Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES), is a carbon emissions cap and trade scheme targeting large commercial properties, which will come into force on 1 April 2010. Any organisation with energy bills over £500,000 per annum will be subject to this mandatory carbon trading scheme that is predicted to affect around 6,000 large companies in the UK.
Stephen Bickell, CEM’s Sustainability Manager, added: “Despite, and perhaps because of, the complexity of CRCEES there is evidence of increased cross discipline internal communication as businesses assess the compliance implications of this legislation. This throws the spotlight onto the property lifecycle and how the various stages in that lifecycle can affect energy efficiency.”