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The UK Carbon Reduction Commitment | 2degrees Sustainability Essentials

The UK Carbon Reduction Commitment | 2degrees Sustainability Essentials

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Published by 2degrees
New to sustainability? Need a refresher course? Looking for a condensed guide to the most topical sustainability issues?, or just need help convincing your boss?

Look no further than the 2degrees Sustainability Essentials series.

These documents provide just what they say - the essential information that every sustainability professional needs to know. Whether its supply chain or smart grids, managing sustainability or managing energy, we have the information you need, all in one easy to read document and compiled by the leading industry experts.
New to sustainability? Need a refresher course? Looking for a condensed guide to the most topical sustainability issues?, or just need help convincing your boss?

Look no further than the 2degrees Sustainability Essentials series.

These documents provide just what they say - the essential information that every sustainability professional needs to know. Whether its supply chain or smart grids, managing sustainability or managing energy, we have the information you need, all in one easy to read document and compiled by the leading industry experts.

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Published by: 2degrees on Sep 28, 2011
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Document Preview:The UK Carbon Reduction Commitment
2degrees Sustainability Essentials
Updated September 13, 2011 Page | 1
The 2degrees Sustainability Essentials Series provides the necessary guidance to a range of topics,for sustainability professionals looking for an easy-to-use guide, companies at the start of their sustainability journeys, or for 2degrees members who are new in their roles. Think of it as a short course to
sustainability issues. This document highlights what you need to know about the UK’s
Carbon Reduction Commitment Energy Efficiency Scheme.
Contents
Performance League Table .......................................................................................................................... .
 
Absolute Emissions .................................................................................................................................... .
 
Growth ............................................................................................................................................................ .
 
Early Action Metric ..................................................................................................................................... .
 
Changes to the Scheme ................................................................................................................................ .
 
Managing the CRC
……………………………………………………………………………………………………………...
 
 
Document Preview:The UK Carbon Reduction Commitment
2degrees Sustainability Essentials
Updated September 13, 2011 Page | 2
Resources and further reading
……………………………………………………………………………………………
 
What is the Carbon Reduction Commitment?
The Carbon Reduction Commitment Energy Efficiency Scheme (usually abbreviated CRC), is a mandatorycarbon emissions reporting and pricing scheme to cover all organizations using more than 6,000MWh peryear of electricity (equivalent to an annual electricity bill of about £500,000). The CRC came into force inApril 2010 and aims to significantly reduce UK carbon emissions not covered by other pieces of legislation. The primary focus is to reduce emissions in non-energy intensive sectors in the UK. The officialCRC website can be found here.  The CRC consists of three parts:
Emissions Reporting
 
participants have to measure and reporting their carbon emissionsannually
Carbon Allowance Purchasing
 
participants have to purchase carbon allowances from thegovernment to cover their emissions from previous years. Reducing energy use and carbonemissions therefore reduce their liability
for 2011 the price of allowances is £12 / tonne of CO2.
Performance League Table
 
participants will be ranked in a publically available league tablecomparing their carbon reductions with other participants. This creates another carbon reductiondriver due to the reputational aspects of the comparisons.The scheme is administered by the Environment Agency in England, Scotland Wales and Northern Ireland. A useful glossary of terms to refer to throughout this document can be found here. 
Who is part of the CRC?
From the Environment Agency website, an organization must register as a participant in the CRC if:It has one or more half-hourly electricity meters settled on the half-hourly marketAnd, it used at least 6,000MWh (Mega Watt hours) of half-hourly electricity during thequalification yearThis applies to all companies, partnerships, public bodies, charities and other incorporated bodies thathave operations in the UK. The qualification year for the introductory phase of CRC is the 2008 calendar
 
Document Preview:The UK Carbon Reduction Commitment
2degrees Sustainability Essentials
Updated September 13, 2011 Page | 3
year. However, if have a sufficient amount of emissions covered by a Climate Change Agreement (CCA)you can claim exemption, or if you participate in the EU ETS.If you are a subsidiary of an organization, or part of a group, the group must act as one entity. Yourhighest parent organization
will normally be the ‘primary member’ who must carry out administrative
actions on behalf of the group. Other organizations within the group should provide information abouttheir energy use to the primary member. If the highest parent organization is based outside the UK, yourgroup must nominate a UK subsidiary to represent the whole organization. Registration is done throughthe Environment Agency
see this webinar for a walk-through guide to the registration webplatform:Environment Agency CRC webcast - Registration as a CRC participant Where a landlord and tenant arrangement exists, regardless of who owns the property, who occupies theproperty or ultimately who uses the energy. In all situations, the responsibility to report under the CRC willlie with whichever organization has a direct contract with the energy supplier. This arrangement exists forboth the half hourly electricity consumption liability and preliminary reporting, as well as the CRC'srequirement for annual compliance. More detailed discussion of the relationship between landlords &tenants in the CRC can be found in the webinar Landlord andtenant engagement in the CRC. Full participation details can be found on the UK Department of Energy and Climate Change(DECC) website 
Footprint & Annual Report
Organizations participating in the scheme must first of all calculatetheir CO2 emissions - this is based on energy use over the
‘footprint year’. Participants in the scheme then have to produce a‘footprint report’
identifying their total CRC emissions. The firstfootprint report had to be submitted by the end of July 2011 forthe 2010 calendar year.Footprint emissions are worked out by adding up all energysupplied from electricity, gas, coal, liquefied petroleum gas (LPG),diesel etc using energy bills, meter readings or fuel delivery invoices. Energy used for transport ordomestic accommodation is not included. At least 90% of total footprint emissions must be regulated

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