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Update: commercial property

Magnus Hassett considers how practitioners should respond to the new energy efficiency scheme and Elizabeth Small gets to grips with sub-sale relief strategies

7 March 2011

Carbon reduction commitment

For the past year, property lawyers have been getting to grips with the carbon reduction commitment (CRC) energy efficiency scheme, with little sign of any standard practice yet emerging on CRC drafting for leases and the raising of enquiries, against the backdrop of a complicated and ever-evolving scheme.

CRC is a mandatory emissions trading scheme for the UK, which aims to reduce carbon dioxide emissions through energy efficiency. Organisations that met the qualification criteria – which are based on whether they were supplied with electricity by a ‘half hourly meter’ and how much electricity they were supplied with –were obliged to register with the Environment Agency by the end of September 2010.

Participating organisations monitor their energy use and, with effect from 2012, purchase allowances from the government for each tonne of carbon dioxide they emit. The more carbon dioxide an organisation em...

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