Cushman & Wakefield, the BRE (Building Research Establishment) and Climate Exchange plc have come together to launch an initiative to advise clients on how to prepare for the Government's new Carbon Reduction Commitment (CRC) which comes into force in April 2010, the final regulations for which are expected at any moment.
For the first time in the UK, this initiative brings together the diverse range of skills required by CRC. C&W is the world's largest privately-held commercial real estate services firm, represents a diverse customer base ranging from small businesses to Fortune 500 companies and offers a complete range of property services. BRE is the UK's centre of excellence in sustainability within the built environment. BRE Group companies operate the BREEAM sustainability rating method for non-domestic property; developed the software used to calculate EPC and DEC ratings and has a diverse range of products designed to help clients such as Toyota, Marks & Spencer, EDF Energy and central government, to improve the sustainability performance of their buildings and portfolios, across all asset classes. Climate Exchange plc is principally engaged in owning, operating and developing exchanges to facilitate trading in environmental financial instruments including emission reduction credits and its trackable contracts account for a majority of all transaction volume in the environmental market. It brings expert knowledge of the financial and trading strategies that will be essential to an effective response to CRC.
The Government has agreed legally binding targets to deliver carbon reductions. Commercial property currently accounts for 14% of total UK carbon emissions and has significant potential to cut emissions through better energy management. The CRC is therefore one of the most far reaching Government policies in recent years to impact commercial property. It has been devised to make energy saving a boardroom issue that will force landlords and tenants to engage with each other.
The scheme is likely to affect all public and private sector organisations which spend more than £500,000 per annum on electricity. They will be required to report their annual emissions and purchase and surrender one carbon allowance for every tonne of emissions they generate. The initial cost of each allowance will be £12 although this will likely rise in the second, capped phase of the scheme starting April 2013. For those organisations in the greenest buildings, however, the CRC could provide a profitable source of income as they will receive bonus payments in excess of the cost of the carbon credits they purchase.
Cushman & Wakefield and BRE will offer clients consultancy advice on the operational and strategic issues needed to successfully manage the compliance issues, risks and opportunities associated with CRC.
Andries Van der Walt, Head of Sustainability UK at C&W said "Since the CRC affects issues such as reputation and financial trading as well as energy use and sustainability, a multi-disciplinary approach is needed at each stage. Very few organisations will have the necessary skills in-house to formulate a successful response to every aspect of the CRC. For this reason we have drawn together the expertise of C&W with that of the BRE and Climate Exchange plc as the leaders in their respective fields. "
Robert Rabinowitz, Director of Environmental Markets at BRE said "Time is now of the essence for organisations in preparing for CRC, in particular with regard to formulating their strategies on the early actions that will determine their league table position and bonus payments in the first year of the scheme. Through our combined skills C&W, BRE and Climate Exchange are well positioned to help organisations through this process and we continue to work with our clients in this regard in the run up to registration and beyond".
Source: Cushman & Wakefield