Post Copenhagen

So what was the fuss about? You'd be forgiven to think that the Copenhagen meeting was a failure and that the environment has fallen off the agenda of most leaders. In fact, in the UK and in most other countries 2010 will be a year of new environmental legislation for many companies. And, Copenhagen, far from being a failure, may well turn out to be a precursor to a legally binding treaty signed in Mexico at COP16 this year.


Copenhagen was always going to be difficult to produce a success. The Kyoto Protocol in 1997 was agreed right at the last minute and then the Americans pulled out. It wasn't until the Marrakesh Accords in 2001 that the mechanisms for Kyoto were agreed and only when the Russians voted to accept the treaty in 2004 did it formally begin in 2005.


At Copenhagen, a rough agreement includes India, China and the USA. Reducing Emissions from Degradation and Deforestation (REDD) is also included and pretty much agreed. Forestry or the reduction of it accounts for 17% of global emissions and any target here is to be welcomed. The EU is willing to reduce emissions by 30% and there is very little challenge to the science of climate change. It won't be easy, but there will be a legally binding agreement in Mexico this year.



Regardless of Copenhagen, the EU is committed to a 20% cut in emissions which equates to a 34% by 2020 for the UK. If Mexico 2010 is successful, it's likely that the EU will increase its emissions reduction to 30% which equates to a 42% for the UK by 2020. Even if you include the reduction in emissions since 1990, there is a still a lot to do by 2020. Every business and household will need to reduce emissions by around 30%.


That's why 2010 is going to be an important year for the UK. In April, the CRC Energy Efficiency Scheme and a new Feed-in-Tariff regime begins. One is about energy efficiency for large firms; the other is a subsidy regime for households and businesses for renewable generation.





The CRC Energy Efficiency Scheme will include every school, hospital, most public buildings as well as large firms that have an energy bill of around £500000. For every tonne of CO2 emitted, the organisation will have to pay £12 a tonne. For Norfolk County Council that's nearly £1million. They will get most of this back, but it depends on how much energy they have reduced compared to other organisations. All CRC participants will be part of a league table where the position will dictate the additional fee you pay or the bonus you receive.


Norfolk County Council emissions are rising and, like other councils, face a rising CRC bill unless they can conserve energy hence the move to switch off street lights. Organisations that claim to be green will soon be exposed by the CRC league table. What's interesting about the CRC is that organisations won't be able to reduce emissions by investing in renewables: they have to reduce energy consumption.


In the next few posts, I will be writing about what households and businesses can do reduce energy use and increase renewable investment under the CRC and the new FiT regime. I'll be analysing the impact of voltage optimisation, change behaviour, solar PV, AD and much more.