In 2010 the Carbon Reduction Commitment (CRC) was introduced specifically to motivate large organisations to reduce their energy consumption or alternatively to pay for any shortfall in achievement of CRC targets.

Schemes that work well typically are simple and easy to understand with a balance of carrots and sticks. Arguably the CRC fails on both accounts and is particularly complicated as the base line targets move on a year to year basis in effect penalising good performance that cannot be sustained.

According to a recent survey of chief executives from 200 top UK companies investment in energy efficiency has dropped down the list of priorities from a year ago.  The intentions of the CRC are good but sadly the stick like approach is far from the best motivator to encourage and reward the adoption of green technology and energy efficient measures.

Whatever the motivations behind the CRC there are a lot more businesses and other organisations who fall outside the net and it would make more sense if a common scheme could apply to all with carrots to reward good practice. Regrettably well proven and successful grant programmes have long since been withdrawn and reinstatement of these would see a marked rise in energy efficiency and green technology.

Ironically rapidly rising energy prices may well come to the rescue of the CRC and help the UK plc to achieve emission reduction targets. Most large power consumers have significant purchasing power and have in the past been able to negotiate favourable contracts.

However as utility supply contracts expire, market forces will take over and higher prices will compel UK Business to invest and implement in an energy efficiency programme.

Have your Say! How do you see the future of the CRC?

Steven Henry – Managing Director