Sustainability - climate change legislation

Energy & Carbon - Reductions and accountability first

The UK is in a major state of change. It is on a transition to a low carbon emitting economy driven by The Climate Change Act 2008 (the profoundest piece of legislation in 100 years) and subsequent and ever expanding carbon/energy reduction legislation and policy. All business and sectors are being affected both in their markets, in the way they operate and the way they are perceived by investors. Ever expanding and toughening compliance requirements coupled with increasing interest in transparency of reporting is opening business to new and complex financial and reputational risks and opportunities.

In this is rapidly developing area we provide clients with a clear understanding of the legislation and input into their strategies to adapt and prepare for the future. We are involved with a number of specialist groups and with government departments providing input for the development of more effective and user friendly legislation.

Carbon Currency – bringing the strings together

We are working with a select group of other professionals to provide a holistic carbon/energy reduction advice to enable an organisation to evaluate and adapt its constituent parts to the future low carbon economy driven forward by existing and anticipated legislation and policy. This involves understanding mandatory or voluntary carbon reporting internationally and for UK business (extending beyond CRC) and which in 2012 the government must have decided to legislate on or, (with a full justification to Parliament) not.

Carbon Reduction Commitment Energy Efficiency Scheme (CRC)

We advise on the complexities of the CRC and its changing requirements – this is a scheme which is set to run until at least 2042 and is designed to create a fundamental behavioural shift in the UK. We have guided financial institutions through to successful registration and have assisted with formation of intra-CRC group guidance for data gathering. In identifying the implications of trust structures for trustees and depositaries we have provided an unique solution which is being adopted by the institutions and pushed forward with The Department of Environment and Climate Change and the Environment Agency. Through the Aldersgate Group, the Emissions Trading Group and Intellect we are helping to simplify the CRC legislation. Our knowledge of this developing piece of legislation is being fed into real estate and corporate transactions and fund formation.

Transactions and transition

We closely monitor technological developments for the 'built environment' and tailor our advice to ensure our clients address these issues – whether dealing with a new build or ensuring existing buildings meet current requirements. We take the lead in identifying our clients’ requirements in this time of change, advising on CRC’s implications on a transaction. In real estate we are providing Green Leases, advising on Energy Performance of Buildings Regulations, creating greening structures for existing leaseholds portfolios and structures for installation of large renewable energy systems and providing guidance for policy decisions for greening. We work with leading surveyors and other professionals to craft guidance for portfolio adaptation. In corporate transactions we are seeking to address CRC implications for the client. We have developed a specialism in Data Centres (an industry which is recognised as forming the backbone for the UK economy) and are involved with the energy/carbon agenda - allocating financial and reputational issues arising from CRC data centre agreements for this.

Energy - renewable systems

We provide advice on the structuring of transactions and investments concerning renewable energy systems. Recent experience has included advising on new lease structuring for renewables installation for Greenfield Energy. This involved giving guidance on the structuring and leasing options/issues for the installation of a major closed loop ground source thermal energy system. We also advise a leading PhotoVoltaics provider and installer involving lease structures and energy procurement contracts.

Key groups

It is essential to stay with and ahead of the development of policy and legislation and so we are active members of the Aldersgate Group. This group is a major apolitical group that is helping to inform and to shape the future of the sustainability agenda. As data centres are the backbone of the UK's IT, financial services and other industries, we are also a member of the Intellect’s Data Centres Sub Group which works to address the impact of new legislation and the sustainability agenda for the data centre industry.