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| UK retail sector to be hit by carbon reduction commitment Global real estate broker Savills has advised that both landlords and retailers will be impacted by the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, the UK’s first mandatory carbon trading scheme, starting in January 2010. The new initiative, which aims to deliver £1 billion a year in energy savings and save more than 4.4 MtCO2 of annual emissions by 2020, could see a typical 500,000 sq ft (46,451 sq m) shopping centre realise a cost implication of up to £65,000 pa in the first phase (2010-2013). The international real estate advisor warns CRC will impact approximately 5,000 medium to large organisations with moderate levels of energy consumption being affected, including retailers. Savills advises both landlords and tenants on the key guidelines of the scheme. The criteria for the CRC participation is companies that consumed more then 6,000 megawatt hours (MWh) of electricity on a half hourly meters in 2008. Phase one of the scheme, operating from 2010 to 2013 will set a fixed price allowance of £12/tCO2, while phase two, starting in 2013 will operate via a market auction price arrangement. The CRC will measure and report performance and emissions on a league table using three 'metrics', Absolute, Growth and Early Action. Companies that fall under the Early Action category will earn the most credit for their participation. With only five months left until the scheme begins both landlords and tenants need to be familiarising themselves with the scheme and reviewing data submission requirements. Organisations must register their participation by 30 September 2010 or face a penalty of £5,000 plus £500 per day for non compliance thereafter. The government has confirmed it will publish the final CRC Order by the end of 2009. write your comments about the article :: © 2009 Construction News :: home page |