With growing optimism that the global economy is in recovery attention is once again focussing on green issues. One initiative on the immediate horizon is the CRC (Carbon Reduction Commitment) Scheme in the UK. It is a compulsory emissions trading scheme for large “non energy intensive” organisations that are not already included in the Emissions Trading Scheme or covered by Climate Change Agreements. Around 20,000 UK organisations are affected by the scheme and must register in April to December this year. Yet very few companies are adequately prepared. But the introduction of so called “Cap and Trade” schemes is not a UK phenomenon. In the United States also these schemes are being introduced. Essentially “Cap and Trade” provides companies with a carbon allowance each year beyond which they are able to sell their under consumption or to buy additional allowance if they consume more. So these schemes have real financial impact. Over the next few weeks, Niki Leahy, FSN’s environmental expert will be examining the practical implications for the CFO and companies’ systems and processes.
score communications