the carbon reduction commitment overview 26th march 2009 pete clutton-brock policy officer
TRANSCRIPT
The Carbon Reduction CommitmentOverview
26th March 2009
Pete Clutton-Brock
Policy Officer
CRC Summary
• Mandatory auction based cap and trade scheme
• Revenue neutral to the Exchequer
• Avoiding overlap
• As simple a scheme as possible
Organisational Structure
Highest Parent Organisation-Companies ActPublic sector-Distinct legal entityPrinciple Subsidiaries-can adjust baseline for changes
Qualification
Are you the highest parent company?
Does your organisation have a HHM settled on the half hourly market?
Do you consume more than 6,000 MWh through all
HHM?
You qualify for CRC and must
register as a participant
You do not qualify as a CRC participant but will need to comply with requests from your highest
parent company
You do not qualify for the he rest of the guide is not relevant for you
You are required to make an information
Disclosure
Are you the highest parent organisation?
Does your organisation have a HHM settled on the half hourly market?
Do you consume more than 6,000 MWh through all
HHM?
You qualify for CRC and must
register as a participant
You do not qualify as a CRC participant but will need to comply with requests from your highest
parent organisation
You do not qualify for the CRC.
You are required to make an information
Disclosure
• Four key actions during the CRC year
1. Purchase allowances at auction
2. Monitor emissions and complete annual report
3. Surrender allowances equal to total emissions, buying / selling allowances as appropriate
4. Receive a recycling payment
CRC Summary
What emissions does CRC cover?
• All Energy-Use emissions - not just half-hourly electricity
• Indirect - Electricity• Direct – Gas, Oil, Coal etc
• Energy use assigned to the Counterparty to the energy supply contract
• Not Covered• EU ETS or CCA emissions• Transport, Households• De-minimis
• 3 year fixed price introductory phase
•Allowance price = £12/tCO2
Buying allowances
Reporting
Once per Phase
• Monitor emissions from all energy use
• Submit Footprint Report
Annually
• Monitor CRC emissions (90% rule)
• Submit Annual Report on CRC emissions
• Self Certification – no 3rd party verification
• Based on energy bills and invoices
• Supplier statements to reduce admin
• Risk based audit backed up by penalty regime
• Evidence Packs – to record energy use and provide audit trail
• Emissions Reporting via an online Registry
Reporting
Performance League Table
• Participants will be ranked by how well they reduce emissions• single league table for all participants• Position in the league table will
determine how much money you get back
• Four key actions during the CRC year
1. Purchase allowances at auction
2. Monitor emissions and complete annual report
3. Surrender allowances equal to total emissions, buying / selling allowances as appropriate
4. Receive a recycling payment
Recap
CRC timeline
What’s new?
• Change of footprint year: 1 April 2010 to 31 Mar 2011• Change of registration period: April 2010 to Sept 2010• First sale of allowances in April 2011 for both the
preceding year and the following year. • Use of Carbon Trust Standard in the early action metric.
What should I do now?
Qualification• Establish organisational structure• Determine half-hourly electricity use for 2008• Sign up to the CRC mailing list
Carbon Monitoring– Need to establish accurate systems to measure kWh and hence carbon– maintain source list inventory
Early Action Metrics– AMR programme for Non-half-hourly metered electricity & gas– Carbon Trust Standard - if 2 years reduction history
Forecasting– Emissions trajectory– Savings from planned projects
