Regulations for SMEs
More than ever before, small businesses now need to be up to speed with the key environmental issues, due to increased energy and climate change legislation and growing attention on the impact of organisations on the environment.
Failing to adhere to new environmental rules can lead to additional costs and legal action, both things that SMEs can do without. And being unaware won’t get you off the hook.
You are legally responsible for the impact your business has on the environment, so it’s down to you to make sure you’re carrying out the necessary environmental requirements, such as disposing of waste properly and not causing dangerous pollution.
Find out how environmental regulations apply to SMEs with the Environment Agency’s NetRegs website.
You can also get information on the environmental issues that are most relevant to your business, including energy efficiency, waste reduction and necessary permits and licences; as well as specialised advice on improving your business’s environmental performance and utilising environmental benefits that can lead to increased profits.
Find out more at Business Link London
Legislative drivers relevant to SMEs and non energy intensive organisations
Businesses are increasingly recognising the need to tackle climate change, and many are making voluntary commitments to cut emissions.
Measures addressing businesses’ greenhouse gas emissions are also developing rapidly. This is a constantly evolving space with new regulations proposed and considered on an ongoing basis.
The Government’s Climate Change Bill sets out the overall framework, and during 2008 a new Committee on Climate Change will set overall carbon budgets for the UK for the next 15 years (covering three consecutive 5 year periods).
Though the Bill is not yet in place a number of measures have already been introduced and new measures have been proposed:
- The Climate Change Levy (CCL) was introduced in 2001 to encourage businesses to reduce energy demand. The Levy is a tax on the use of non-renewable energy in industry, commerce and the public sector, with offsetting cuts in employers’ National Insurance Contributions and additional support for energy efficiency schemes and renewable sources of energy. Exemptions are available for energy from renewable sources and ‘good quality’ combined heat and power. The aim of the Levy is to encourage users to improve energy efficiency and reduce emissions of greenhouse gases. Following the introduction of the Levy, the EU made it a requirement for all Member States to tax the business use of energy. To maintain the levy’s environmental impact, from 1 April 2007 CCL rates are being increased on a yearly basis in line with inflation.
- Government has also committed to introduce a mandatory cap and trade scheme for large commercial and public sector organisations not covered by the EU ETS or substantially covered by CCAs. This is called the Carbon Reduction Commitment (CRC). It will target CO2 emissions from organisations, or groups of affiliated organisations (and therefore may be relevant to small businesses). Though details are still being finalized, the scheme is expected to apply to organisations whose mandatory half hourly metered electricity consumption is greater than 6000 MWh per year and whose energy use is not already substantially covered by a Climate Change Agreement. The scheme will generally capture organisations with annual electricity bills above £500,000. The scheme is expected to begin from 2009, and further detail will be set out as part of the Climate Change Bill.
- Government will also consult towards the end of 2007 on the requirement to display Energy Performance Certificates (EPCs) in business premises in England and Wales. These Certificates will provide an energy rating (from A to G) for these buildings and will set out what steps can be taken to improve their energy efficiency. The information will be an important aid to businesses in meeting their climate change commitments, whether regulatory, such as through the EU ETS or the new CRC, or through voluntary action.
