Climate change & energy

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This subject is now dealt with by the Department of Climate Change and Energy.

 

Related information

Key material

Carbon Reduction Commitment: What do I have to do?

Participants will be required to submit annual data statements via an on-line registry to the Environment Agency - the UK Scheme Administrator - on a self-certified basis - using their own meter readings or with reference to annual energy bills. It is proposed that the Environment Agency, the Scottish Environment Protection Agency and the Northern Ireland Environment Agency will regulate and audit the scheme.

Organisations will need to provide for audit the detailed data on which their overall annual figures are based. The regulators will carry out risk-based audits to check the accuracy of data being submitted to them.

Over the course of the year, we expect that an organisation will undertake the following steps:

  • Calculate their total organisation-wide energy use emissions. Best practice would be to devise a carbon abatement strategy and consider energy efficiency measures
  • At the start of each compliance year, purchase allowances from the auction (or fixed price sale during the introductory phase) to cover their total emissions. Note that there will not be a legal requirement to take part in the auction (technically, an organisation could choose to only buy allowances on the secondary market or buy through the buy-only link to EU ETS (the safety valve))
  • Monitor, assess and manage emissions throughout the emissions year (1st April to 31st March)
  • If necessary / desired, an organisation could buy or sell allowances on the secondary market, or buy through the buy-only link to EU ETS (the safety valve)
  • Report emissions and surrender sufficient allowances to cover emissions by the end of July via an online registry
  • Receive recycling performance payment at the end of October, incorporating a bonus / penalty calculated on the basis of their position in the performance league table.

Further information: common questions and answers

When will CRC start?

The scheme is scheduled to begin in April 2010, with a three-year introductory phase. The first capped phase will begin in April 2013.

What emissions will organisations have to report on?

On an annual basis organisations will be required to report all their UK-based CO2 emissions from all their fixed point energy sources. This includes electricity, gas and other fuel types such as LPG and diesel. However, organisations will not be required to report on their transport emissions.

Is CRC too complicated?

We have sought to minimise administrative complexity and maintain an emphasis on simplicity. In relation to administrative burden, the CRC has been designed so that it only includes large organisations that will save enough on energy bills to offset the administrative costs of participating. Organisations using less than 6,000 MWh/year of half-hourly electricity will be exempt.

Whereas the EU ETS concentrates primarily on large industrial point sources, large non-energy intensive organisations are the principal focus of the CRC. Accordingly, CRC will be much ‘lighter touch’ than the EU ETS, relying on self-certification of emissions (backed up by an independent risk based audit regime) rather than third-party verification of all organisations or of all sites. 

Will organisations that buy green electricity tariffs and/or offsets still have to report?

Yes. Organisations that import ‘renewable/green electricity’ via the grid will have to report this within CRC at the grid emissions factor (irrespective of whether Renewables Obligation Certificates (ROCs) are claimed).

Although the CRC will not create additional incentives to purchase green tariff electricity it will not penalise or create disincentives for its purchase. This is consistent with the approach taken under UK Emissions Trading Scheme, CCAs and ACT ON CO2 – and is consistent with the focus of CRC on actions taken by the end user organisation. Moreover, Government wishes to ensure that the carbon savings from CRC are additional to those that will be delivered by the Renewables Obligation.

CRC is aimed primarily at improving energy efficiency and reducing emissions within the CRC sector, and therefore credit will not be given to offsetting schemes.

How can I improve performance?

The Carbon Trust provides many useful sources of information for those wishing to manage their energy use effectively. They also provide site survey and carbon management products for companies with energy bills over a certain size.

Visit www.carbontrust.co.uk or call 0800 085 2005 for more details.

You may wish to seek accreditation under the Carbon Trust Standard: the Carbon Trust Standard certifies that an organisation has genuinely reduced its carbon footprint and is committed to making further reductions year on year.

Organisations accredited under the Carbon Trust Standard will receive recognition in the CRC performance League Table. Visit www.carbontruststandard.com for more details.

Page last modified: 8 September 2008
Page published: 18 August 2008

Department for Environment, Food and Rural Affairs