Carbon Reduction Commitment

Get ready for the Carbon Reduction Commitment

The UK Carbon Reduction Commitment (CRC) is firmly on the agenda of many board meetings today.

What is it?

A mandatory auction based ‘Cap & Trade’ programme covering carbon emissions. Affected businesses will be set annual targets for emission reductions aligned to the government’s climate change commitments. Those organisations that emit in excess of their allowance will need to purchase carbon credits from organisation’s that have a deficit, via a market trade mechanism.

Who is affected?

UK based private and public sector organisations whose combined electricity use through half hourly metering exceeds 6,000 MWh per year. About 5,000 organisations with energy spend of greater than £500,000 will be obligated to take part.

Are there any exemptions?

Direct emissions covered by EU ETS (EU Emissions Trading Scheme) are exempt from the CRC. Also organisations with more than 25% of their energy use emissions covered by a CCA (Climate Change Agreement) will be completely exempt from the scheme.

Is it the law?

Regulations are expected to be published shortly. These will be tabled in Parliament once the Climate Change bill is passed.

When does it start?

It will begin in April 2010 with a 3 year introductory phase, however actions will be necessary during 2009. Qualification for the scheme will be based on an organisation’s total half hourly electricity usage over the full calendar year of 2008.

What this means to your business?

It is likely to cost a business about £36,000, and more if your energy usage is greater than 6,000 MWh per year. Failure to comply will lead to additional expensive fines.

You need to prepare your organisation for the CRC by making an early assessment of your carbon emissions via a Carbon Footprint Appraisal, and then start reducing them.

By reducing energy & CO2 you will

• Save operational costs
• Avoid punitive charges
• Have an opportunity to trade your carbon savings into real profit
• Gain marketing differentiation & advantage

Contact Carbon Footprint to discuss your energy management needs & for your obligation free Business Appraisal quotation