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Maximising Savings, Minimising Waste

 

Carbon Reduction Commitment (CRC)

What is the CRC?

It is an emissions trading scheme for ‘non-energy intensive’ users in the public and private sector. It will be mandatory for qualifying organisations to record and submit CO2 emissions to the CRC Administrator and then to purchase allowances for these emissions, all via an online CRC Registry. The overall aim is to improve energy efficiency and reduce CO2 emissions.

Is this relevant to you?

Qualifying organisations must have at least one half hourly meter (HHM) and have a combined annual electricity consumption greater than 6,000 MWh within the qualifying period.

What does your organisation include?

This needs to de defined by your company, but it is to include all parent organisations and subsidiaries.

How much will it cost?

Those included in the scheme will need to purchase CO2 allowances, initially priced at £12 per tonne of CO2 emissions per year.   Following the initial sale period, organisations can buy or sell allowances depending on their energy performance, by trading on the secondary market.  There are also initial and annual registration fees.

When does it start?

The scheme starts in April 2010 and a CRC Timeline is attached.  However, it is advised that your company undertakes preparation work now, as detailed below.CRC Timeline

What does your company need to do/consider now?

  1. Appoint a Project Manager
  2. Allocate resource to co-ordinate the project and compile the information
  3. Define the company Organisation
  4. Quantify a CRC Budget
  5. Decide who is going to submit the information
  6. Pre-warn all HHM supply addresses of the Sep 2009 Qualification Pack
  7. Compile all details and consumptions through all HHMs for the calendar year 2008
  8. Prepare a system of maintaining auditable evidence of consumptions and emissions.

What are the implications of non-compliance?

Fines and publication of non-compliance.

Timeline

Click on the thumbnail to the right to show the timeline for preparation and implementation (click here for a .pdf version).

For more information about CRC, click here for Defra's User Guide


Energy Procurement Overview
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