Mandatory GHG Reporting vs. CRC

Do you need to know the difference between the Carbon Reduction Commitment (CRC) and Mandatory Greenhouse Gas (GHG) Reporting that are two key pieces carbon legislation that businesses face?

We summarise the main aspects to help your Organisation to understand and plan your business's requirements.


Criteria

CRC Phase 1

CRC Phase 2

Mandatory Greenhouse Gas  Reporting

Who is in it?

UK based public and private section organisations, using >6000MWh of electricity during the qualification period (see Exclusions)

UK based public and private section organisations, using >6000MWh of electricity during the qualification period (see Exclusions)

Impacts UK incorporated companies that are also:

-      listed on the main market of the London Stock Exchange, or

-      whose equity share capital is listed on a European Economic State, or

-      admitted to dealing on either the New York Stock Exchange or NASDAQ

Size Qualification Criteria

>6000MWh electricity usage on half hourly meters (full participation)

3000-6000MWh – submission only

>6000MWh electricity usage on half hourly meters (full participation)

Not applicable

Exclusions

EU ETS and CCA facilities

English LA state schools

EU ETS and CCA facilities

Not applicable

Qualification Period

2008 calendar year

1 April 2012 – 31 March 2013

Not applicable

What’s the scope

Site emissions from electricity used and fossil fuels used on site (29 fuels covered in total)

Site Emissions from Electricity and Gas (for heating purposes) only (just 2 fuels)

 

De minus rule: If gas usage is less than 2% of electricity then the gas amount can be excluded from the CRC

Companies must report emissions from activities under their control, for which the company is responsible for

(e.g. may also include transport elements for a business)

International Emissions?

Not included, only for UK operations

Not included, only for UK operations

Yes - Includes reporting on your company's emissions outside the UK if you have overseas operations

Which Greenhouse Gases?

Just CO2

Just CO2

6 Kyoto greenhouse gases (CO2, CH4, N2O, HFCs, PFCs and SF6)

Start Date for reporting period

1 April 2010 – 31 March 2011

1 April 2014 – 31 March 2015

Comes into place for company reporting years ending on or after 1 October 2013

End Date for the scheme

Final Period :

1 April 2013 – 31 March 2014

Final Period :

1 April 2018 – 31 March 2019

Ongoing

Where you report

Via Environment Agency Web Site

Via Environment Agency Web Site

Report emissions in the Directors' Report section of your company's Annual Report

Performance League Tables

Yes –  was published by the Environment Agency

Not formally, but there may be unofficial league tables published

Not formal, but there may be unofficial league tables published

Price of Carbon Allowances

£12/tCO2

£12/tCO2  for FY11/12 and could increase in future

No Carbon Allowances to be bought

Purchase and surrender of allowances

Sale was in April, purchase through the Environment Agency gateway.

Sales ‘window’ is 1 June - 31 July 2013 -

Surrender allowances by last working day of July annually

First year of phase 2 is reporting, first sale in June 2015.

Surrender of allowances to be last working day of  October

Not applicable

Does it need Auditing by an independent body

Internal audit required. There are fines if inaccurate data is submitted

Internal audit required . There are fines if inaccurate data is submitted

No, but it needs to be signed off by your Director within the Directors Report

Fines

Yes, many fines for inaccurate data submission or late submissions

Yes, many fines for inaccurate data submission or late submissions

Under Companies Act 2006. Possible that failure to disclose appropriately may result in the need to revise report and/or set of accounts.

 


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