Don’t be threatened by carbon opportunity

Managing director of the “carbon neutral” ‘manned guarding’ company Magenta Security, Abbey Petkar, tells Northern Housing why he thinks the new CRC Energy Efficiency Scheme is an opportunity not a threat

This month, the CRC Energy Efficiency Scheme (previously known as the Carbon Reduction Scheme) came into force in an effort to improve the UK’s energy efficiency and reduce carbon emissions. The new scheme is mandatory, but allows for some autonomy fororganisations to decide how they will achieve their reductions, and it is aimed specifically at large public and private sector organisations, according to the Environment Agency (EA). “It will act as an incentive to improve energy efficiency and will help large private and public sector organisations generate cost savings through reduced energy bills. These savings should exceed the cost of participating,” the EA said.

In simple terms, Petkar says, the scheme places a cost on carbon emissions and provides caps on energy usage, whilst providing opportunities to buy and trade allowances. Key to the scheme,however, is that the individual organisations have the right to decide for themselves the most cost effective way to go about making reductions.

Overall the scheme is likely to affect around 20,000 organisations across the UK , which between them account for approximately 10 per cent of the country’s emissions. There are various means of qualification for the scheme but it is expected to initially affect local authorities and government departments as well as supermarkets, banks and so on. There is to be a three year roll out of the scheme with various qualification levels and phases, culminating in 2013 with the first capped phase and the beginning of carbon auctions.

So why is Petkar so pleased with the scheme to welcome it as an opportunity? There are two main reasons he cites.

“Firstly, as an environmentalist, anything done by any organisation to improve our climate and decrease damage to the Earth is in my opinion a good thing. Many people deride the government for not doing enough, or anything at all. [The CRC] is a substantial step and should at the very least raise awareness levels. Secondly, the organisations involved can make up their own minds about how to improve their energy efficiency. It provides opportunity for those smaller businesses and service providers already going to great lengths to be energy efficient,” Petkar said.

“Organisations, like Magenta Security, who are already measuring, reducing or completely negating their emissions and environmental impact are in the perfect place to help. As the scheme kicks in, the companies affected need to start looking very hard at all areas of their business, identifying potential cuts and opportunities for greater efficiency. What better place to start than the replacement of an
inefficient supplier with an efficient one?

“I appreciate that any purchasing teams reading this are probably having an apoplectic fit at such a blasé comment; I entirely understand that supply change in large organisations involves lengthy tender processes, due diligence and extensive negotiation. However; it doesn’t change the fact that the use of carbon neutral suppliers has a direct and immediate effect on emissions. Just think of the difference you would make by immediately changing the supply of your catering, cleaning and security services from carbon heavy to carbon neutral.”

However, Petkar says it is unlikely that a company will find a carbon neutral, environmentally friendly supplier for all their services immediately, but small steps in “the right direction” will create measurable benefits under the CRC.

“Draw up a list of potential suppliers,” Petkar added. “Look into those where immediate changes can be made, in those cases where there are long term contracts and commitments, [and] start communicating with the suppliers. Make them more aware of the scheme; see what they can do to help you. Surprisingly few small businesses are aware of the CRC or how it is likely to affect their larger clients.

“Above all don’t fear the CRC. Yes it will mean changes. Yes it is likely to mean some more red-tape and paper-work. But for once the sacrifice is worth making. It has been years since the Kyoto summit and only now are we seeing real differences in the way our policy makers behave. Just think how long it will be before [last year’s Copenhagen Summit] talks have any impact – it may well be too late by then.”