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News Release

London

CRC to be simplified and possibly scrapped

Jones Lang LaSalle Comment


London, 21st March 2012 - It was announced today that the CRC Energy Efficiency Scheme will significantly simplified and may be scrapped if this cannot be achieved. This piece of legislation has been labelled as cumbersome and ineffective by the real estate business community.

Despite the difficulties of implementing the CRC, most have found an increased focus on energy management to have a positive impact with cost savings from efficiency gains. Energy is the second largest cost to most businesses and costs are set to rise still further in the coming years.

The priority for investors in Real Estate should be to continue to focus on accurate carbon emissions data monitoring to reduce energy and reduce costs. Developing an accurate picture of energy consumption across a real estate portfolio allows investors to focus their efforts on those assets that are the least efficient, thus reaping most return on investment.

Abigail Dean, Associate Director, Upstream Sustainability Services at Jones Lang LaSalle commented:  “Jones Lang LaSalle welcomes the simplification of the CRC. This is not a popular piece of legislation for the real estate sector where the split in energy consumption between landlords and tenants makes it difficult to implement meaningfully. However, the majority of landlords and developers remain committed to reducing their carbon footprints.”

“It will be a real challenge for the CRC to be simplified enough to lead to the significant savings in administration costs that the Government is seeking. If it is to be scrapped, it is likely to be replaced with a significant increase in Climate Change Levy and mandatory carbon emissions reporting for listed or large organisations.”