CRC boosts energy efficiency in 56% of businesses

21st July 2015


Related Topics

Related tags

  • Mitigation ,
  • Management/saving

Author

IEMA

The carbon reduction commitment scheme (CRC) has driven energy efficiency investments in over half of businesses, according to a report for the energy and climate change department (Decc).

The report assesses the impact of the scheme since it began in 2010 and was produced by CAG Consultants, Imperial College, the Carbon Trust and Databuild. The research found that nearly all organisations investigated were taking some action on energy efficiency.

More than two-thirds of energy managers (71%) reported that their organisation’s level of action on energy efficiency had increased compared to 2010, the report states.

Rising energy prices were most commonly cited by businesses as the main driver for investing in measures to improve energy efficiency (80.5%). This was followed by an increase in board-level priority (67.4%) and a desire to improve or protect reputation (64.2%). The CRC scheme was ranked fourth, with 56% citing it as a key factor.

The cost of CRC allowances has both raised awareness and improved the business case for energy efficiency, the report states, while fear of enforcement and resulting reputational damage has encouraged compliance.

The most common measures taken to improve energy efficiency were: energy efficient technologies (93%); energy monitoring (85%); energy audits by external bodies (79%); staff education (79%); and automatic meter reading systems (77%).

Lack of funding was cited as the most common barrier to improving energy efficiency (48%), followed by uncertainty over the long-term benefits and costs (10%), and limitations of buildings (8%).

Around half of CRC participants told researchers they felt the scheme was not delivered efficiently or consistently. However, satisfaction with the scheme had increased since the early phases, they found. The government’s “simplification” of the scheme has reduced the perceived burden associated with complying, as well as overlaps with other schemes, says the report.

Nonetheless, many participants criticised successive changes to the scheme. They said the alterations had made compliance more complicated, had created an administrative burden in adjusting to changes and had undermined the credibility of the scheme.

Many complained that the CRC had effectively become a tax since the government removed revenue recycling, which gave best performing companies revenue back from the scheme. But others reported that the process of reporting energy consumption and approving purchase of CRC allowances helped make energy efficiency more visible in their organisations.

The report highlights calls from several respondents for a clearer overview of government energy efficiency policy and more consistency between government carbon schemes, including greenhouse-gas reporting.

The government announced in the budget that it is to carry out a review of business energy efficiency taxes. However, the report shows no overall consensus from business on how this should be done. Some participants suggest a more closely targeted approach might reduce overlap between schemes, while others would like to see one overarching scheme, with variations for particular sectors.

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Facing the climate emergency challenge in local government

It’s well recognised that the public sector has the opportunity to work towards a national net-zero landscape that goes well beyond improving on its own performance; it can also influence through procurement and can direct through policy.

19th March 2024

Read more

The UK government’s carbon capture, usage and storage (CCUS) strategy is based on optimistic techno-economic assumptions that are now outdated, Carbon Tracker has warned.

13th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

The UK government’s latest Public Attitudes Tracker has found broad support for efforts to tackle climate change, although there are significant concerns that bills will rise.

13th March 2024

Read more

Multinational corporations are undermining their net-zero commitments with excessive air travel and no plans to reduce ‘the low hanging fruit’ of carbon footprints, a study by Transport & Environment has found.

13th March 2024

Read more

The UK government’s climate adaptation plans are ‘inadequate’ and falling ‘far short’ of what is required, the Climate Change Committee (CCC) has warned today.

13th March 2024

Read more

Large businesses across the world are avoiding climate action due to fear they will be called out for getting their work wrong, according to a new Carbon Trust report.

29th February 2024

Read more

A thought-provoking discussion on how storytelling can change the world took place in Central London last night, alongside an exclusive sneak preview of an upcoming IEMA film series.

29th February 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close