Carbon efficiency is a key issue for property owners and contractors, especially where there are energy efficiency targets forming part of the performance indicators in long term contracts such as PFI/PPP concession agreements.
Many organisations will be getting to grips with the new Carbon Reduction Commitment Energy Efficiency Scheme (CRC). From April, the CRC – a new mandatory cap and trade scheme for carbon dioxide emissions aimed at incentivising energy efficiency – has been affecting large non-energy intensive commercial and public sector organisations in the UK. Emission reductions will be rewarded, but poor efficiency performance, or non-compliance with the scheme, will be penalised by increased costs, bad publicity and/or criminal enforcement sanctions.
The Government has not yet issued specific guidance as to how the CRC scheme will affect PFI/PPP projects but the Environment, Safety and Planning team at Norton Rose are tracking progress and will provide updates in due course. We attach links to some of the relevant publications prepared by Norton Rose. If you would like any further information please let us know.
Related Publication: The Carbon Reduction Commitment Energy Efficiency Scheme - navigating the new regime
Related Publication: Renewable energy - The Carbon Reduction Commitment Energy Efficiency Scheme