What are the key measures to look out for, when will they come into effect and who will be affected ?
The majority of initiatives in 2007 focused on emission reductions and the increase of renewables use. The climate change bill places a legal obligation on the government to reduce CO2 emissions in the UK by 32% by 2020 and 60% by 2050.
A number of regulations coming into force will affect developers, construction companies, landlords, tenants and all stakeholders with an interest in land and buildings. By October 2008, ‘energy performance certificates’ will be required on the construction, sale and rent of all buildings. Each building will be given an asset rating between A and G based on its energy efficiency.
In March 2007, the EU agreed that 20% of energy should come from renewable sources by 2020. Both the planning bill and the energy bill contain measures aimed at encouraging renewables, as well as promoting nuclear power.
What fines and penalties have hit polluters and other environmental offenders?
Very few organisations have been fined to date under Part 2A of the Environmental Protection Act, but two high profile High Court cases in 2007 (Transco and Sevenoaks) indicate that the Environment Agency and local authorities may finally be prepared to use litigation to force remediation of contaminated land.
Which sectors need to pay closest attention to environmental legislation?
Manufacturing companies need to ensure that they remain fully compliant with the environmental provisions dealing with contamination, health and safety, waste, emissions and asbestos.
This is especially true for companies that emit a large amount of CO2. Organisations will have to show they are actively reducing emissions, otherwise there could be financial and publicity implications.
The EU is also proposing to include aviation and shipping emissions in the EU Emissions Trading Scheme in 2008.
What are the most important points in the Carbon Reduction Commitment?
The Carbon Reduction Commitment (CRC) was introduced in the 2007 energy white paper and is due to come into force in 2010. It is a proposed mandatory cap and trade scheme in the UK that will apply to large non energy-intensive organisations in the public and private sectors. The aim is to cut CO2 emissions by 1.2 million tonnes per year by 2020.
The CRC scheme will apply to organisations that have a mandatory half-hourly
metered electricity consumption greater than 6,000 MWh per year, although it
would apply to emissions from direct energy use as well as electricity
purchased.
Failure to comply with the CRC could mean a fine of up to 10% of a company’s
annual energy bill depending on its position in a CRC league table.
How can companies set about calculating their emissions right now?
There are a number of carbon reduction consultants that offer services to assist an organisation in reducing emissions. The Carbon Trust has a carbon footprint calculator on its website that could be a useful tool in the initial stages of calculating emissions.
What about other concerns that companies face like waste and packaging?
The packaging waste regulations are intended to encourage the minimisation of packaging and related waste, incentivise reuse and increase the recovery and recycling of packaging waste. They apply to all producers of packing waste.
Companies that handle more than 50 tonnes of packaging and have more than £2m financial turnover per year will have to comply with the regulations. Businesses have a choice of how to comply. They can do everything themselves and produce evidence of compliance, or they can join a registered compliance scheme. A scheme takes on the legal obligations for a business and carries them out for it.
Companies also have to ensure that if they are dealing or handling waste, there is a clear paper trail of waste transfer notes from carriers and landfill site operators.
Another important consideration is asbestos. Companies must ensure that there is an up-to-date asbestos survey and management plan for all non-domestic premises. Failure to do so is a criminal matter and can have serious financial implications.
Stephen Stephens is a real estate partner and Will Taylor is an environmental lawyer at LG
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