Carbon Reduction Commitment (CRC) expert Paul Stepan, at an event hosted by the College of Estate Management (CEM), has warned new carbon reduction legislation is weighted strongly against the property sector.
Stepan, from environmental consultancy Camco, said: "The government's well meaning process of policy simplification has left landlords in a poor position. Furthermore difficulties with regards to legally charging their tenants for CRC costs and the desire to recover administration and other associated expenses, compound the issue. These costs could become more significant once the financial impact of the scheme becomes clearer."
The CRC, now called the Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES), is a carbon emissions cap and trade scheme targeting large commercial properties, which will come into force on 1 April 2010. Any organisation with energy bills over £500,000 per annum will be subject to this mandatory carbon trading scheme that is predicted to affect around 6,000 large companies in the UK.
Stepan was speaking to property professionals at a seminar on the impact of the CRCEES following final changes to the scheme, held on 28 October. The seminar is part of a series held by CEM on issues affecting the property industry.
Stephen Bickell, CEM's sustainability manager, added: "Despite, and perhaps because of, the complexity of CRCEES there is evidence of increased cross discipline internal communication as businesses assess the compliance implications of this legislation. This throws the spotlight onto the property lifecycle and how the various stages in that lifecycle can affect energy efficiency."
Further information can be found at www.cem.ac.uk.
