Accountants issue warning about carbon reporting plan

Date: 11th August 2008

Accountants have warned the government that its plans to force businesses to measure and report their carbon emissions could present serious problems for many companies.

Experts from KPMG told the government's Carbon Reduction Commitment (CRC) that the new reporting rules - which are due to come into force in a little over a year - will impact over 10,000 firms in the country and could present a major "challenge" for many of them.

Under the new rules, some businesses will be required to measure their energy usage from fixed point sources, report to the government on that usage and then pay for the emissions their energy creates.

Richard Sharman, the head of KPMG's carbon advisory group, explained: "For many companies, having to measure their total energy usage across all their operations will put them in very unfamiliar territory and prove to be a real challenge.

"It is vital that companies start to look at this now so that they are ready for the scheme's introduction - and so that they can take action if they fear they may come out towards the bottom of the pile."