Energy efficiency - large commercial and public sector organisations

The government has issued a consultation paper on possible measures to facilitate a significant reduction in carbon emissions by large non-energy intensive commercial and public sector organisations, by the year 2020. The sector targeted by such measures includes supermarkets, hotel chains, rail operators, large offices, universities, central government departments and large local authorities. The two principal methods discussed are:

Energy performance commitment: an auction-based "cap and trade" programme, under which participants would be required to purchase tradable allowances corresponding to their energy emissions, with the aim of encouraging greater energy efficiency (a reduction in emissions would result in a lower level of required allowances).

Voluntary benchmarking and reporting: a voluntary system of reporting emissions and energy performance within an agreed framework, to allow for comparison with other participating organisations, and for publication of data collected.

Other methods also briefly discussed are: longer-term improvements to the Building Regulations; enhanced information provision and advice to businesses; and industry-led voluntary agreements for emissions reduction. Views are invited until 31 January 2007, with the outcome of this and other related consultations to be fed into an Energy White Paper early next year.

[Source: Defra website - News Release 480/06 'Commerce, public sector to contribute to reducing emissions', 8 November 2006

'Consultation on measures to reduce carbon emissions in large non-energy intensive business and public sector organisations', November 2006