Latest developments and news about the CRC scheme:
Only 651 organisations had registered by 5th July, which is only around one-third of those expected to have to buy carbon allowances. An additional number of organisations that have half-hourly meters but don't exceed 6,000MWh of electricity consumption are required to register even though they are outside the emissions trading scheme. Fines apply for non-registration so if in doubt, please check the Environment Agency site and the links on this page for clarification. Some additional key points are noted below:
Disaggregation deadline 30th June: The Environment Agency reportst that some organisations are having difficulty making their initial registration by the 30th June deadline for disaggregation. It is willing to extend the initial registration window for those wishing to disaggregate until the 31st July. Anybody wishing to do this should send an e-mail with "CRC Intent to Disaggregate" in the subject line to CRCHELP@environment-agency.gov.uk confirming your intention to register and disaggregate as soon as possible. Note that organisations will still be required to complete registration and disaggregation by 30th September.
Registration concerns and delays: It appears that many organisations are delaying their registration due to concerns over how the Environment Agency will handle errors. All Participants and Declarers are urged to register as soon as possible before the registration deadline of 30th September, in order to provide the maximum time to check and correct any errors. Further guidance on error resolution here.
To speak to a CRC advisor if you have issues with registering call 08708 506 506 and select option 4.
Previous update from January 2010
As a result of stakeholder consultation, DECC has announced changes to the Carbon Reduction Commitment, which comes into force in April 2010. The main changes are:
- To smooth the introduction of the scheme and to help ease the upfront costs, organisations will only have to report emissions in the first year (2010/11). In subsequent years organisations will have to buy allowances corresponding to their emissions from energy use, and then surrender them by the end of the year.
- In the second year (2011/12) the weighting for early action metrics will be increased from 20% to 40%.
- Recognition will be given to organisations which use onsite renewable energy like wind turbines or solar panels by publishing the increased carbon savings from such measures.
- Organisations will be given greater flexibility in how they participate. Subsidiaries that are large enough to qualify in own right (at least 6000MWh) may opt to do so separately from their organisational group.
Given the primary focus of the scheme is energy efficiency, the CRC will now be known as CRC Energy Efficiency Scheme. The Carbon Reduction Commitment will be mandatory for organisations which consumed 6,000 MWH of energy in 2008 and have at least one half hourly meter. It includes both private and public sector organisations. CCA members will be exempt if their CCA use is 25% or more.
It's basically a cap and trade scheme – carbon allowances will be auctioned and then traded, with the revenue raised returned to the participants as incentives for the best performers.
There will be a 3 year introductory phase from 2010 to 2012 – during this phase the price of CO2 will be fixed - the current figure is £12 per tonne although this is subject to confirmation prior to launch. Initially there will be no limits on the allowances available for purchase. In 2013 full auctioning starts, via sealed bids. The Environment Agency will oversee the programme, although reporting will be self certified with 20% of the members audited per annum.
The actions required of participants are:
1. Forecast emissions in line with abatement strategy
2. Buy allowances
3. Monitor and manage emissions
4. Buy or sell allowances as required.
5. Report at year end – 3 months to report, a further month to surrender allowances.
6. Receive/make a recycling payment.
If you believe that your organisation may be within the criteria you can email CRCHelp@environment-agency.gov.uk to get on the stakeholder mailing list. The Carbon Trust can offer advice and assistance on the CRC Energy Efficiency Scheme and carbon abatement issues in general.
