You will no doubt be aware that the UK Government’s Climate Change Bill, which is aimed at cutting the UK’s CO2 emissions by 80% by 2050 compared to the recorded levels of 1990, has resulted in the issue of the Carbon Reduction Commitment (CRC) Legislation, which came into force in April 2010.The effect of this on organisations will be such that they will be required to monitor and report their total energy emissions from April 2010.
This will become mandatory for organisations that have one or more half hourly electricity meters settled on the half hourly market, which exceeded 6,000MWH during 2008.
There are still obligations on those companies below the 6,000MWh threshold to register or declare their usage, depending on consumption levels. Those companies above the threshold will qualify for the full CRC Scheme.
The principles of the CRC are to encourage the participating organisations to improve on their carbon footprint by reducing energy consumption. Each organisation will enter into a CRC Performance League Table. The participating organisations will be required to purchase and cancel emission allowances, corresponding to their total CO2 emissions. Each allowance equates to one tonne of CO2 and participants will be encouraged to purchase sufficient allowances to cover their annual emissions based on the 2008 usage.
The first sale of emission allowances will be in April 2011 based on the forecast emissions of 2011/2012. The returning “recycling payment” which could either be in the form of a bonus or a penalty, depending on the performance of the organisation, will be made in October 2011. The first year of the scheme 2010/2011 will be regarded as the monitory period.
In order for the organisations to improve their chances of the recycling payment being a bonus as opposed to a penalty, they must ensure that they improve their CO2 emissions at a higher rate than other participants in the scheme in order to at least maintain their position in the League Table.
Goodrich Sustainability are partnering with various companies in order to provide a service which not only enables the CRC calculation to be carried out, but also to follow this up with a detailed, professional approach to improving your energy consumption, reducing your CO2 emissions and giving you the best possible opportunity of turning the CRC Legislation to your advantage by realising bonus payments.
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