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.
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Criteria |
CRC Phase 1 |
CRC Phase 2 |
Mandatory Greenhouse Gas Reporting |
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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 |
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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 |
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Exclusions |
EU ETS and CCA facilities |
English LA state schools EU ETS and CCA facilities |
Not applicable |
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Qualification Period |
2008 calendar year |
1 April 2012 – 31 March 2013 |
Not applicable |
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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) |
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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 |
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Which Greenhouse Gases? |
Just CO2 |
Just CO2 |
6 Kyoto greenhouse gases (CO2, CH4, N2O, HFCs, PFCs and SF6) |
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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 |
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End Date for the scheme |
Final Period : 1 April 2013 – 31 March 2014 |
Final Period : 1 April 2018 – 31 March 2019 |
Ongoing |
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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 |
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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 |
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Price of Carbon Allowances |
£12/tCO2 |
£12/tCO2 for FY11/12 and could increase in future |
No Carbon Allowances to be bought |
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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 |
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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 |
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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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