This scheme will require large public and private sector organizations like supermarkets, hotels, hospitals, local authorities and central government departments, to improve the energy efficiency of their estate.
This is expected to lead to considerable financial savings, and to make large organizations focus their attention on their carbon footprint. The Department of Energy and Climate Change and the Environment Agency will be running the scheme.
The CRC targets the UK’s emissions reductions of at least 34% on 1990 levels by 2020 through improved energy efficiency. The scheme is mandatory and will save participants around GBP1bn per year by 2020 through cost effective energy efficiency measures that are not yet being taken up.
By 2020, the scheme is expected to have delivered emissions savings of at least 4.4 Mt CO2 per year.
The scheme will target organizations whose annual half hourly metered (HHM) electricity use is at least 6,000MWh – typically those that spend GBP500,000 a year on electricity although all organizations who have a half hourly meter will be required to participate in some way.
Joan Ruddock, energy and climate change minister, said: ”There’s just one month to go until the start of the CRC which will see large public and private sector organizations cutting emissions as well as saving money on fuel bills. This is a real opportunity for business and industry to take a leadership role in tackling climate change and gain reputational advantage as a result.”
