Climate Change is recognised as one of the greatest environmental challenges facing the world today. The Kyoto Protocol made the initial steps to reduce greenhouse gases and prompted the creation of a Carbon Market.

The UK Government has made the greatest contribution to addressing climate change by committing itself to: a greenhouse gas reduction of 20%; the generation of 10% of the country's electricity from renewables by 2010; the introduction of a new energy tax as well as the creation of an operational carbon market in 2001. 

The Carbon Management Consultancy of Battle McCarthy recognise that few companies within the property industry understand the implications that these measures will have or the potential opportunities that may arise from them.

The new Climate Change Levy will be an added tax to business energy bills and will come into effect in April 2001. At this time the UK will introduce a nationwide Emission Trading Scheme. This scheme, for which the government has set aside £30m per year, will set targets for reducing emissions and will reward participants with incentives for achieving these targets. At the end of each year companies will be given permits to cover their emissions for that year. Those companies that achieve greater emission reductions will be able to trade their credits with those companies that have not been able to achieve their targets.

A number of companies are already investing in carbon credits, forestry and renewables to balance their development plans. Typically these have been the big “polluters” such as the oil and gas industry. By contrast, the property industry has remained largely uninformed of the potential changes and opportunities that the new Climate Change Levy and Carbon Trading market will bring.

The implications of operating in a ‘carbon neutral’ environment are significant, as buildings amount for almost half of all global greenhouse gas emissions. For example a typical 100,000m² development would emit over 20,000 tonnes of CO₂/year through its lifetime and about 500,000 tonnes of CO₂ as a result of its construction. When the same building is developed in a carbon neutral environment it requires a trade of about £400,000/year just to offset the annual greenhouse gas emissions. 

Opportunities

• Become a core member in the trading group and help set future policy and legislation
• Gain invaluable experience and knowledge of the market ahead of all competitors
• Contributions from the treasury towards energy efficiency measures and CO₂ reductions.
• Publicity associated with being one of the pioneers of the scheme

The potential for companies to benefit from the market will depend on their ability, their own abatement costs and finally their commitment to reduce CO₂ emissions.   

For more information contact:

Prashant Kapoor at Carbon Management Consultancy, Battle McCarthy at pkapoor@battlemccarthy.com.

© Battle McCarthy 2001

 THE CARBON CLUB

 

The Carbon Club comprises of a group of companies with the aim to investigate the impact of energy and carbon reduction policies on their businesses. In particular, the group will identify opportunities for taking advantage of the new activities in this area which could be used to generate extra revenue and profits.

 

The Carbon Club will bring together companies in Property, Retail and Telecoms which have a common interest and which will be able to research and lobby as a joint body more effectively than if they were operating alone. The Carbon Club will be managed and supported by Carbon Alliance, a joint venture between Battle McCarthy and Environment Business.

 

The Carbon Alliance will be able to provide a range of services to the Carbon Club, including the following:

• Carbon Asset liability assessment

• Carbon abatement solutions and costings

• Emissions trading advice

• Entry to market and trading opportunities

• Advice on CCL and means of exemption

• Research advice on carbon abatement techniques

• Annual carbon accounting

Click here to got to our Carbon Club Website.

 

Carbon Management

As an active member of the UK Emissions Trading Group [ETG], Battle McCarthy can offer advice to companies to help them understand the consequences of the ETG - opportunities, cost, risks, etc. We can also help companies to start internal trading markets [or form a group alliance with other companies].

Battle McCarthy can also evaluate and cost the option for effective control of energy consumption in light of the upcoming Climate Change Levy.

Zero Carbon Development

Battle McCarthy can advise Architects and Developers on design and development of   ‘Carbon Neutral Projects’ through guidance on new innovative technologies such as, wind, solar, geothermal, etc., energy saving measures and advice on ‘carbon farming’ potential.

Carbon Abatement

 

We are always ready to recommend proactive strategies to companies as the proposals for a domestic emissions trading scheme gather support.

Climate Change Levy

The Climate Change Levy (CCL) is a new tax on energy use in industry, commerce, agriculture and the public sector to be introduced in April 2001.

Who will pay and what will it cost?

UK businesses* and public sector organisations will pay the levy, via their energy bills. The full rates of levy will be:

• 0.43p/kWh for electricity**
• 0.15p/kWh for gas and coal
• 1.17 p/kilogram for coal
• 0.96 p/kilogram for LPG

*Small businesses on domestic tariffs will not pay the CCL.

**Electricity generated from ‘new’ renewable sources of energy (excluding large scale hydro) and in good quality combined heat and power plants will be exempt from the levy.