Companies should act now to prepare for CCA changes
IEC Managing Director Mike Jones believes companies should act now to reduce the impact of changes to Climate Change legislation.
Mike attended a recent meeting to take part in the discussion about the impact of the changes, and provided a formal response to DECC during the consultation process.
He said: “The government’s formal consultation period closed at the end of October and the new legislation is due to come into effect from 1st January 2013.
“Although the new CCA should be simpler, companies are likely to face potentially higher costs. This is because, for most, the targets will be higher and therefore more difficult to achieve. In addition, there will be a stronger penalty if a company fails to achieve its targets because the cost of carbon is to be fixed at a much higher rate.
“Ultimately, what this means is that businesses must focus on becoming more energy efficient. Using less energy in production processes is by far the best way to limit liability against the Climate Change Agreement. This means reviewing production processes to eliminate waste, and instilling an energy efficient culture among employees. All this, while managing ‘business as usual’ in an economic downturn to boot – not an easy task.”
For further information on how the CCA changes could affect your business, go to our CCA section or get in touch.