Logistics News Policy Top Stories Trailer Truck Van

FTA to help companies comply with EU energy audits

03 July 2014 #Logistics #News #Policy #Top Stories #Trailer #Truck #Van

The EU’s Energy Efficiency Directive is set to challenge companies to reduce the energy use in their operations. The Freight Transport Association (FTA) believes that its government-approved data scheme will help hauliers and freight firms reduce their fuel usage.

The new directive is set to pose new constraints for UK businesses, where firms that employ more than 250 people or turnover more than £40 million annually will need to audit their energy usage every four years, with the first one due on 5 December 2015.

This urgency has led to the Department of Energy and Climate Change to create legislation in line with this directive to help UK businesses tap into ‘significant’ energy efficiency savings.

Energy and Climate Minister Gregory Barker, said, “The Energy Savings Opportunity Scheme (ESOS) will help large organisations identify savings they can make on their energy bills. The scheme could benefit the UK as a whole by up to £1.6 billion with the vast majority of this being felt directly by business through lower bills.”

The government’s ESOS best practice guidance has confirmed that the FTA’s managed Logistics Carbon Reduction Scheme (LCRS) is compliant and is seen as the ideal programme to help companies collate the data on their freight transport costs.

The association says that 40% of all logistics operating costs is down to fuel, and LCRS, which represents 100 companies and more than 70,000 commercial vehicles, will provide the sector with an incentive to further reduce fuel usage and carbon emissions

Rachael Dillon, Climate Change Policy Manager at the FTA, said, “The LCRS collects simple fuel and business activity data and could clearly assist freight operators with ESOS. We are pleased that the Department of Energy and Climate Change’s best practice guide recognises the LCRS as a mechanism to help manage the freight transport data required.”

She added that while the focus on reducing energy usage is important, there is a fear that the impending directive will cause extra cost and burdens for companies, alongside many other schemes such as the Carbon Reduction Commitment and the Mandatory Greenhouse Gas reporting obligations.

Update Newsletter