Committee on Climate Change (CCC) has came forward and said that the UK needs to do more to meet its climate change agreements. At present, the UK will comply with its first five years of carbon budgeting, but this is only as a result of the recession.
While greenhouse gases have fallen by 8.6% in the last year, only a small proportion can be put down to measures addressing climate change, organisations are still not doing enough to meet the government’s climate change commitments. However, new legislation in the shape of the CRC Energy Efficiency Scheme is now in place and businesses will have to start making an effort to reduce their CO2 output or face financial penalties for failing to act.
The new directive only effects larger organisations, so those below the threshold (6000MWh/yr) don’t have to make any investment. However, reducing energy consumption means reduced energy bills and lower CO2 output, so it is in the interest of all businesses regardless of size to invest. For smaller organisations (who spend less than £100,000 per year on energy) the Carbon Trust offers interest-free loans to help make investment more affordable. The loans are paid back through the savings achieved meaning that businesses can effectively get new, reliable, efficient equipment for FREE.
Small businesses need to take advantage of the Carbon Trust loans as a way of reducing their energy costs. By reducing fixed costs (energy costs) through the adoption of energy saving equipment, organisations will automatically become more competitive, which could make all the difference in the current climate.
What energy saving methods do you think are best for improving competitiveness?