The CRC is a new mandatory carbon emissions trading scheme aimed at improving the energy efficiency of UK businesses and organisations that consumed at least 6,000 MW of energy during 2008. The legislation will effect private and public sector organisations and “not for profit” organisations. 

 

The objective of the new legislation is to reduce the amount of Carbon Dioxide (CO2) emissions emitted in the UK and forms part of the UK government’s commitment to reduce UK greenhouse gas emissions by 80% of the 1990 emissions level by 2050. 

 

Those organisations that consumed 6,000 MW of energy during 2008 will automatically be obliged to participate in the CRC scheme and will need to monitor their CO2 emissions and where appropriate, purchase CO2 allowances for £12/tonne CO2 sold by the UK government for each tonne of CO2 they emit. The more CO2 the organisation emits, the more allowances they must purchase. The CRC scheme has been designed to provide a financial incentive for those participating organisations to improve their energy efficiency and reduce their CO2 emissions. If managed correctly, the energy efficiency improvements will reduce the organisations annual energy costs off setting their CRC CO2 allowance costs. 

 

Clean Energy Consultancy CRC Services

Clean Energy Consultancy can assist clients to comply with the requirements of the CRC scheme. We can provide an initial CRC Energy Audit to determine whether your organisation must participate in the CRC scheme. The audit will determine the organisations 2008 energy usage and CO2 emissions and will calculate the CO2 allowances required to be purchased to ensure compliance with the CRC scheme. 

 

Once the CRC Energy Audit has been completed, we can provide a CRC Energy Review for your organisation aimed at improving your organisations energy efficiency. The objective of the CRC Energy Review is to reduce your organisations annual energy demand and subsequent energy costs and CO2 emissions. This will reduce the number of CO2 allowances required to be purchased by your organisation, reducing your organisations annual allowance costs. 

 

Failure to Comply

The CRC is a mandatory scheme and it places a legal obligation on those organisations who qualify for the scheme to disclose their energy usage data to the CRC scheme. Any qualifying organisation that fails to register with the CRC scheme will be fined a fixed penalty of £5,000 plus £500 per working day until registration is submitted.

 

Those organisations that register but fail to submit their annual energy usage data and CO2 emissions will be subject to a financial penalty of £5,000 and at least £129 per day (5 pence per day) for each tonne of CO2 emitted based on energy usage of 6,000MW per year. 

 

When Does the CRC Commence?

The CRC commences in April 2010. The scheme begins with a three year introductory phase which will be extended to a seven year phase. The introductory phase includes a “Qualification Period” where organisations must assess whether they qualify. Clean Energy Consultancy CRC audits will meet this requirement. If the Clean Energy Consultancy audit confirms your organisation qualifies for the scheme, we will then provide your organisation with a CRC Energy Review which is used to register the organisation with the CRC scheme. The scheme requires all participates to operate a “Footprint Year” during which Clean Energy Consultancy can assist your organisation to monitor your annual energy demand and CO2 emissions per footprint year and provide your organisation with the annual CRC “Footprint Report” to be submitted to the CRC scheme ensuring CRC compliance.

 

Carbon Reduction Commitment Draft March 2009