Isra-Mart srl: Nine out of 10 firms meet Carbon Reduction Commitment reporting deadline

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More than 90 per cent of firms have met the first reporting deadline imposed by the Carbon Reduction Commitment (CRC) scheme, providing detailed data on their carbon footprint to the Environment Agency.

According to figures released yesterday by the watchdog, 4,295 reports were lodged with the agency ahead of last month's deadline, out of an anticipated 4,549 organisations that are thought to face CRC reporting obligations.

The result means that around 95 per cent of the companies and public sector bodies required to file official CRC carbon reports have met the first reporting deadline.

The Environment Agency said that the reports cover over 60 million tonnes of carbon emissions, equivalent to more than 10 per cent of the UK's total carbon footprint.

The high level of compliance was arguably greater than had been anticipated given earlier reports that large numbers of organisations were either unaware of the new rules or ill-prepared to report on their carbon emissions.

"This is a new scheme for the UK, so we are pleased that the vast majority of organisations required to submit a report have done so by the deadline," said Tony Grayling, head of climate change and communities at the Environment Agency, in a statement.

He added that the high level of compliance meant the agency was now well positioned to produce the first public CRC league table in the autumn, which will rank companies based on their energy efficiency performance.

A spokeswoman for the Environment Agency told BusinessGreen that those organisations that failed to lodge an official report detailing their energy use and carbon emissions ahead of the deadline would be called on to comply with the rules as soon as possible or risk potential fines.

"We have sent warning letters to non-compliant participants that they have failed to comply with the reporting deadline and civil penalties may apply," she said. "We will keep under review and may decide to impose these penalties if they remain in breach of the CRC Order."

The CRC remains highly controversial, with a number of business groups, including the CBI, leading calls for the government to reverse its decision to scrap the original revenue recycling element of the scheme, which was axed last autumn effectively turning the scheme into a carbon tax.

Meanwhile, some green groups have also criticised the scheme's complexity, arguing that a simple carbon tax would represent a less onerous means of driving investment in energy efficiency.

The government and the Environment Agency are currently seeking feedback on the costs of complying with the CRC with a view to simplifying the scheme, and are inviting participants to provide information on their experiences through an online survey.

The deadline for registering responses to the survey is the end of August.