Dave Lacey: good news for commercial heating.

CRC will revolutionise commercial sector, says Vaillant

Published:  29 March, 2010

KENT: Heating and renewable technology manufacturer Vaillant is confident that the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) will have a huge impact on medium non-energy intensive commercial and public sector organisations.

The CRC is a new emissions trading scheme that becomes mandatory in April 2010.  Its objective is to combat climate change by reducing carbon emissions. It is one of a package of measures to be introduced under the Climate Change Act, in order to meet the carbon reduction targets set for 2050.

Dave Lacey, commercial director (UK and Ireland) at Vaillant, said: "The CRC initiative can only have positive repercussions for the commercial boiler market. Not only will the scheme encourage businesses to reduce carbon emissions, it will also allow them to be more cost-effective, enabling them to upgrade to a more energy efficient level of boiler plant.

"This initiative also encourages companies to consider other forms of carbon reducing technology, such as renewables."

The initial phase of the CRC will be compulsory for organisations that consumed over 6000 MWh of half-hourly metered electricity during the period from January 2008 to December 2008.

At today's prices, this is roughly equivalent to total electricity bills of approximately £500 000 a year. Medium to large-sized commercial entities such as manufacturers, hotels, banks, local authorities, supermarkets and schools will come under the scheme's remit.

It is designed to shift awareness in businesses at senior level, and drive changes in behaviour and infrastructure.

"All of these bodies have a clear idea of how much it costs to emit carbon, so there is now a powerful incentive to invest in reducing emissions," Mr Lacey continued.

The Government aims to publish annual performance league tables to judge how well the members of the CRC scheme are doing. The higher up the table an organisation appears, the more financial 'reward' it will receive when the Government re-distributes the funds from the carbon credit trading scheme.

This means the scheme offers a significant return on investing in reducing carbon emissions. There are also 'reputational rewards' available for finishing higher up the league table.

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