Comments on: The CRC - “A Dangerous Obsession”? http://dofonline.co.uk/blogs/eco-finance/carbon-emmissions/credit-carbon-reductions-54484/ Joining the dots between cost and carbon reduction for finance directors Thu, 17 May 2012 02:13:59 +0000 http://wordpress.org/?v=2.5.1 By: Ross http://dofonline.co.uk/blogs/eco-finance/carbon-emmissions/credit-carbon-reductions-54484/#comment-2358 Ross Tue, 10 Nov 2009 14:39:38 +0000 http://dofonline.co.uk/blogs/eco-finance/?p=95#comment-2358 The <a href="http://www.somar.co.uk/carbon-trust/CRC-energy-efficiency.php?Pageid=113" rel="nofollow">CRC Energy Efficiency Scheme</a> probably won't yield appreciable carbon reduction results for the first few years, since it isn't really designed to. The slowly-escalating bonus/penalty rates won't cost businesses much money until they reach the 40-50% marks or beyond, depending on whether the government decides at any point to really start driving the changes. Until that point companies will be hit by the carbon administration overheads and the cashflow burden of credit purchasing, but the incentive for change will largely be elsewhere, i.e. protecting bottom lines by cutting energy costs. This will leave the scheme wide open to criticism for the next few years, both from those who will bemoan the lack of results and those who begrudge the extra accounting burden. The CRC Energy Efficiency Scheme probably won’t yield appreciable carbon reduction results for the first few years, since it isn’t really designed to. The slowly-escalating bonus/penalty rates won’t cost businesses much money until they reach the 40-50% marks or beyond, depending on whether the government decides at any point to really start driving the changes.

Until that point companies will be hit by the carbon administration overheads and the cashflow burden of credit purchasing, but the incentive for change will largely be elsewhere, i.e. protecting bottom lines by cutting energy costs. This will leave the scheme wide open to criticism for the next few years, both from those who will bemoan the lack of results and those who begrudge the extra accounting burden.

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