Wednesday, 28 July 2010

Climate Change Act could encourage off-shoring

One unforeseen consequence of the Climate Change Act 2008 is that companies may seek to meet its requirements simply by moving their power-hungry plants from the UK to emerging nations. Under the Carbon Reduction Commitment Energy Efficiency Scheme, or CRCEES, (formerly the Carbon Reduction Commitment or CRC), organisations have to audit their carbon use, so that there is a baseline measurement in 2011. Thereafter they will be expected to reduce their carbon demand. If you have a large data-centre in the UK, it is tempting to shut it down after 2011 and relocate it in an area outside the ambit of CRCEES.

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