We have to face facts. Like it or not, there is a growing pressure to reduce our output of greenhouse gases, and carbon has become enemy number one.
The government has made a significant commitment on our behalf to reduce carbon emissions and we can now expect to have to start playing our part. April 2010 is a key date as it signals the start of the Carbon Reduction Commitment (CRC) scheme. This is a new regulatory incentive that will begin to rein in the major energy consumers: all large business and public sector energy users will be required to participate in the scheme, on the basis of aggregated consumption across all subsidiary companies.
What if you are not a "large" energy user? Will you still have to get involved? Well the short answer is it depends, but for the great majority of business landlords the writing is on the wall - it's not so much a case of whether, but when. We'd better get used to it. We are entering a period of rapid and irreversible change.
Ask yourself...
Do you have a strategy to manage your carbon emissions?
Have your properties been assessed in respect of their energy efficiency?
Are you aware of your responsibilities under the CRC scheme?
Do you have a plan to bring your properties up to modern energy standards?
Are you aware of your commercial options?
Have you discussed these options with your tenants?
When do you plan to take action?
NB Real Estate has an opinion - do you?
The three minute highlight...
Let's take a look from the landlord's perspective. You will be liable for the carbon that is generated from your premises. As a result, you will incur costs, not least scheme administration, and this is not necessarily a rechargeable expense.
It goes further - leases only allow for repair and maintenance costs to be passed on to tenants under the service charge, so caution is needed with significant carbon reduction investment. Read more >
The full story...
The Carbon Reduction Commitment will be a godsend for landlords - discuss!
The government has made some pretty aggressive commitments on our behalf and now we are starting to see the results in action. On the face of it, landlords are being singled out for unfair treatment: especially if they cannot control the energy consumption behaviour of their tenants, but they are responsible for the consequences.