Pressure on IT chiefs to reduce their environmental impact is set to intensify after the government unveiled plans for a new Climate Change Bill as part of today's Queen's Speech.

The proposed law would set a statutory commitment to cut CO2 emissions by 60 percent on 1990 levels while five-year targets would be enforced to ensure progress is made. The bill also includes plans for an independent Carbon Committee designed to help the government reduce emissions while remaining " equitable and mindful of sectoral and competitiveness impacts".

Under the bill, the government would also have the power to extend the existing EU carbon trading scheme to cover industries currently unaffected by the programme.
Experts agreed that the new bill could have a large impact on firms' IT departments, particularly with the government's upcoming energy review and the next budget expected to be shaped by the legal requirement to deliver the first major reduction in carbon emissions within five years.

"We're talking about a 60 percent reduction in carbon emissions on a 1990 base level that we're now well passed," said Richard Barrington, head of public policy at Sun Microsystems. "To achieve that is going to impact everything that consumes energy and IT needs to realise that IT equipment and associated air conditioning are very significant producers of CO2."

He added that while the proposed bill does little beyond setting a target for carbon reduction, that target would provide the impetus for major changes in public-sector procurement of energy-efficient products, legislation governing the energy efficiency of electrical equipment, and levels of taxation on carbon-intensive activities.

The proposed bill could become stricter still with both the Conservatives and Liberal Democrats saying they will oppose the current draft of the bill in favour of a version proposing annual rolling targets for CO2 reduction. Some Labour backbench rebels are expected to vote with them and a government victory for the current draft is not guaranteed.

Barrington said that whichever version of the bill is passed it will provide a forceful reminder to IT chiefs that increasingly stringent regulations are on the way and that it is in their interest to act now to reduce the carbon footprint of their IT equipment.

"This is a real opportunity for IT to not just deliver cost savings in the form of energy bills but also reposition itself as a force for social good rather than a nerdy operational support role," he added.

IT directors are increasingly embracing this message, according to new research released earlier this month by analyst firm AMR Research. The survey of 200 European firms found that technology-related spending on environmental issues will exceed a fifth of total IT spending in 2007.

Nigel Montgomery of AMR wrote in the report that European firms are increasingly investing in environmental projects as a means to exploit business opportunities and avoid being sidelined by increasingly environmentally aware customers. The report also found 82 percent of respondents plan to select suppliers at least partly based on their environmental record, while over 40 percent already claim to do so.