Will Only the Fittest Survive the CRC Energy Efficiency Scheme?

While critics of the CRC Energy Efficiency Scheme cry foul, taxation, government intervention and needless bureaucracy, proponents argue that the weighty legislation represents commonsense. There is undoubtedly a conflict between economic recovery and the need to achieve sustainability in many respects, but in other respects they should be viewed as one. Economic recovery should dictate that efficiencies are put in place to help ensure that such a bad downturn is not a return visitor.

It’s difficult to believe that organizations are not aware of the growing threat of climate change and the inevitability that is the rush to sustainability. However, surveys in the UK have shown confusion and lack of awareness, even though the CRC Energy Efficiency Scheme has received considerable publicity around the country.

5000 or so organizations are expected to be directly involved in the program. They have already referred to their 2008 energy and electricity use to calculate what their overall positions will be during 2009. As they prepare to register and start compliance in the new year they make take some solace from the fact that the true weight of the program does not really arrive until 2013. In the meantime, however, fines and other restrictions still await those who are behind.

Many of the major industrialized nations are watching with keen interest the developments in the UK as the CRC Energy Efficiency Scheme unfolds. The “cap and trade” program will ultimately severely punish those companies that are unable to achieve efficiencies and to balance the need to buy the right to emit carbon with their peers.

The fittest will survive as the scheme rolls out, as not only will there be fines awaiting those who cannot comply, but due to the fact that carbon will be essentially a tradable commodity, the cost of business will also increase. As a league table will be published, reputations will undoubtedly be hurt, to add insult to injury.

As we all emerge from the most severe economic downturn we can remember, organizations must focus on the need to be sustainable. This will require them to look inwardly at their makeup from A-Z. The regeneration will force them to get a good appreciation of how they actually operate, the real cost of doing business and what they need to focus on to ensure survival and prosperity.

Two fairly small scale real-life simulations have been staged in the UK to demonstrate the effectiveness of the CRC Energy Efficiency Scheme. As might be expected, numerous different issues have emerged and there are sure to be amendments to the scheme as it rolls forward. This is the case with any far-reaching and innovative legislation, but it underscores the need for the company to be as agile as it can be and ready for anything.

All of an organization’s assets must be classified as potential problem areas and each should be analyzed as far as performance and efficiency is concerned. As this happens, savings will be realized, but this will only happen if there is a good amount of high-quality information available. Businesses must select solutions and systems to help them review this data.

Daniel Stouffer has a great deal of information about the CRC Energy Efficiency Scheme and why a visit to www.verisae.com can benefit you.


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