Your SlideShare is downloading. ×
0
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Carbon Reduction Commitment seminar
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Carbon Reduction Commitment seminar

1,093

Published on

Blake Lapthorn solicitors' Climate Change team held a seminar on Carbon Reducation Commitment during November 2009.

Blake Lapthorn solicitors' Climate Change team held a seminar on Carbon Reducation Commitment during November 2009.

Published in: Technology, Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
1,093
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Enviros Consulting Limited is part Slide 1 of the Sinclair Knight Merz Group
  • 2. Carbon Reduction Commitment (CRC) Energy Efficiency Scheme: Briefing Damian Culshaw & Ruth Whittington 25 3 June 2009 November 2009 2009 Winner of four Edie Awards for Environmental Excellence - Best consultancy for Waste and Recycling; Climate Change and Renewables; Due Diligence; Water and Wastewater Enviros Consulting Limited is part of the Sinclair Knight Merz Group
  • 3. Contents • Introduction to Enviros Consulting • Policy overview • Steps to tackle the CRC • A worked example • Contact details Enviros Consulting Limited is part Slide 3 of the Sinclair Knight Merz Group
  • 4. Enviros Consulting: About us Our Pedigree • Over 30 years’ experience in a Our Organisation strong and growing sector • £35m revenues, over 400 staff • Full service, integrated • 13 offices in the UK, Ireland and environmental, health and safety Prague plus the CAT Alliance - a consultancy global environmental JV covering • ‘Blue chip’ client base in both the 50+ countries public and private sectors • Enviros was acquired by Sinclair • No1 brand in environmental Knight Merz in Nov 2009 consultancy Enviros Consulting Limited is part Slide 4 of the Sinclair Knight Merz Group
  • 5. Our core business is divided into five service areas Waste & Resource ‘Cradle to grave’ resource management encompassing eco-design, Management process optimisation and materials recovery Compliance & Environmental Meeting and benefiting from regulatory obligations by taking an Solutions integrated approach Health and safety advice and support across the property Health and Safety management, retail, construction and corporate markets Sustainable Development & Mgmt. and technical services at every point in the planning, Regeneration development, design and construction life cycle Climate Change & Helping clients address the demands and opportunities of a low Renewables carbon economy Enviros Consulting Limited is part Slide 5 of the Sinclair Knight Merz Group
  • 6. Our ‘blue chip’ client base Enviros Consulting Limited is part Slide 6 of the Sinclair Knight Merz Group
  • 7. Our CRC work covers the public and private • Public sector: sectors – Department of Energy and Climate Change (DECC) extensively over past 5 years – National Health Service (NHS): understand costs and benefits of participation – Kirklees County Council: prepare for the CRC • Private sector: – Trelleborg – Kerry Foods – Tesco – DCC Enviros Consulting Limited is part Slide 7 of the Sinclair Knight Merz Group
  • 8. What is the CRC? • The CRC is a mandatory emissions trading scheme that will cover large non- energy intensive UK organisations • Organisations will be required to measure, monitor and report emissions from stationary (i.e. non-travel) energy uses (electricity, gas, oil, coal etc.) • Organisations will buy emissions ‘allowances’ from Government • They must surrender enough allowances each year to cover their emissions • Revenues from the sale/ auction will be recycled back to participants • The amount an organisation receives back will depend on its emissions and a performance related bonus/ penalty • All participants’ performance will be ranked in a league table and published Enviros Consulting Limited is part Slide 8 of the Sinclair Knight Merz Group
  • 9. The scheme will start in April 2010 Introductory phase First capped phase Collect data to set cap Absolute cap on emissions 1.2MtC (8%) April March April March 3 years ~5 years reduction on 2010 2013 2013 2018 BAU by 2020 Fixed price sale Allowances auctioned annually • You shouldn’t wait until then to plan your strategy • Your performance in this scheme will affect your costs, your regulatory compliance and your reputation Enviros Consulting Limited is part Slide 9 of the Sinclair Knight Merz Group
  • 10. Enviros has worked for Government on the CRC throughout its development Dec 2005 July 2006 Jan 2007 Oct 2007 Mar 2009 Jun 2009 Carbon Trust Energy 1st public 2nd public CRC user 3rd public report Review consultation consultation guide and consultation Identifies confirms role on new on CRC draft on CRC policy gap for new policy closes closes Regulations closed policy published Enviros and Enviros reviewed Enviros also Enviros Enviros has NERA Consulting responses to this reviewed this produced a reviewed produced a consultation, consultation report which responses to report for Defra which showed which gave quantified the the recent reviewing the more support for feedback on impact of the consultation on volume & nature the CRC than e.g. green CRC on the the draft order of carbon savings voluntary electricity & NHS for for DECC opportunities in benchmarking & organisation DECC and the UK reporting definition DoH Enviros Consulting Limited is part Slide 10 of the Sinclair Knight Merz Group
  • 11. Enviros is using this knowledge to help clients: Get ready for the CRC Reduce costs, energy and carbon • Organisation definition • Energy monitoring and targeting (M&T) • CCA exemption • Energy saving and carbon reductions • Carbon Trust Standard accreditation – energy efficiency • Energy metering including AMR – renewables, CHP & trigen – training and awareness raising Manage compliance – stakeholder engagement • Registration • Compliance action plan • Emissions trading strategy Enviros Consulting Limited is part Slide 11 of the Sinclair Knight Merz Group
  • 12. October announcement • Cashflow: single payment/ recycling for first sale • Significant Group Undertakings: large principle subsidiaries can participate in their own right • Early Action Metric: CT Standard no longer only eligible scheme; metric weighting reduces more gradually (100% to 40% to 20%) • Renewables: energy use will be published alongside league table (treated same as brown for carbon calculations if ROCs issued/ use FIT) • Public sector definition: Freedom of Information Act definitions now used • Timing of EA mail outs: guidance on registration/ information disclosure due end of October; some guidance on AMR, early action metric already available • Database: Not too late to let the EA know if want number of meters to be grouped together for correspondence Enviros Consulting Limited is part Slide 12 of the Sinclair Knight Merz Group
  • 13. First compliance year Second compliance year Third compliance year April 2010 to March 2011 April 2011 to March 2012 April 2012 to March 2013 Footprint year Submit footprint report for April 2010 to March 2011 2010/11 Source: DECC modified by Enviros Registration April to Sept 2010 Submit annual Submit registration Submit annual report and or information surrender report for disclosure allowances for 2010/11 information 2011/12 April Sept April July Oct April July Oct 2010 2010 2011 2011 2011 2012 2012 2012 1st Sale takes place 1st Recycling payments 2nd Sale takes place 2nd Recycling made payments made •Buy emissions •Revenue from April 2011 •Buy allowances for • Revenue from April allowances for forecast sale recycled back to forecast 2012/13 2012 sale recycled 2011/12 allowances participants allowances back to participants Enviros Consulting Limited is part Slide 13 of the Sinclair Knight Merz Group
  • 14. What are the immediate priorities for organisations? • Are you covered by the CRC? You have to take responsibility for all energy consumption where you pay the energy bill P1: Make sure you understand all of the energy sources you are responsible for • You will need to report your half hourly/ 70kVA electricity use from calendar year 2008 P2: Make sure you have electricity statements for all the relevant electricity suppliers • You will also need to report energy use from all ‘core’ energy sources and make sure that at least 90% of your energy use is reported on, from April 2010 P3: Make sure you can monitor, keep an evidence pack for and report all the energy uses (not just electricity) you are responsible for (see P1)` Enviros Consulting Limited is part Slide 14 of the Sinclair Knight Merz Group
  • 15. What are the immediate priorities for an organisation? • Failing to comply with the rules will incur financial penalties P4: Make sure that you have the roles and responsibilities in place to follow the development of the rules and to implement the actions required within the timetable • In April 2011 you will need to buy one years’ worth of allowances from Government; a proportion of that money will be recycled back six months later P5: Make sure that you have budgeted to buy the allowances and understand the cashflow/ VAT impacts/ responsibilities that result from recycling • Your league table position affects your costs and your reputation – you will be compared against your competitors. In the first year, whether you have the Carbon Trust Standard (or an equivalent) and voluntary Advanced Meter Reading will drive your score. After that, reducing your emissions becomes more important P6: Develop a strategy to manage your league table position decide to get the CT Standard and/or to improve your AMR and then the emissions reductions to prioritise Enviros Consulting Limited is part Slide 15 of the Sinclair Knight Merz Group
  • 16. Herts Partnership Foundation Trust (HPFT) HPFT Parent organisation 56 sites* HHM 491,443 KWh HHM 942,426 KWh Covered by CRC? No 2 HHMs (across 2 of 56 sites) Electricity through these (2008): 1,434 MWh <6,000 MWh HHM electricity half hourly metered site (99 Waverley Road – Office) half hourly metered site (Haysebury – In-patient) * includes 24h residential, drop-in, minority shared, mixed use buildings, multi-building site, offices Enviros Consulting Limited is part Slide 16 of the Sinclair Knight Merz Group
  • 17. Enviros can help you: • Establish whether an organisation is captured by the scheme • Identify which energy uses are covered and what energy use data needs to be collected • Set up/work with an EMS &/ data management system to meet CRC requirements • Monitor and measure energy use and emissions from each covered source • Compile and maintain an evidence pack and prepare to report an annual emissions • Develop a strategy to score top marks in the league table by: – achieving the Carbon Trust Standard (we have 3 CT Standard Assessors) and/ or – installing Advanced Meter Reading (AMR) • Reduce carbon emissions to save money & improve league table performance • Work out the financial implications (including allowances costs, non compliance penalties, cashflow implications, redistributing recycling revenues internally) • Work out what resources/ roles/ responsibilities are required to comply with the scheme • Develop and implement a carbon trading strategy • Provide training (workshops, briefings, practical sessions) on all of the above Enviros Consulting Limited is part Slide 17 of the Sinclair Knight Merz Group
  • 18. For further information • Damian Culshaw damian.culshaw@enviros.com 01865 408287 • Ruth Whittington ruth.whittington@enviros.com 0207 421 6359 Enviros Consulting Limited is part Slide 18 of the Sinclair Knight Merz Group
  • 19. Carbon Reduction Commitment Energy Efficiency Scheme - a quick review leading to ‘how green is your lease?’ Green breakfast Wednesday 25 November 2009 David Rayner, partner, Real Estate, Blake Lapthorn head of Commercial Development sector
  • 20. CRC – background Introduced by Climate Change Act 2008 Final consultation closed 04.06.09 Revised proposals announced October 2009 – now called Carbon Reduction Commitment Energy Efficiency Scheme Government targets to reduce greenhouse gas emissions from 1990 baseline by 34% by 2020 : 80% by 2050 Reduce energy use by large organisations Buy and surrender allowances per tonne of CO2 emitted Environment Agency = administrator and regulator Introductory phase – 2008 calendar year Estimate total consumption at registration – estimate be within 20% of actual First phase 01.04.10 – 30.03.13 Cap and trade scheme NOT revenue producing CRC acronyms EA and suppliers will write to the billing address – be warned! Draft guidance from the Department of Energy and Climate Change or Department of the Environment CRC threshold likely to reduce in future © Blake Lapthorn 2009
  • 21. Am I in? During 2008 Did you consume at least 6,000 MWh electricity? Through at least 1 half hour meter? Were you the signatory to the supply contract? = full participant (about £500,000 electricity bill) If less than 6,000 MWh through at least one half hour meter = make an information disclosure Group companies Highest parent reports Doesn't include all energy if: energy used for transport Climate Change Agreement, EU Emissions Trading Scheme © Blake Lapthorn 2009
  • 22. Duties if in CRC Register with E.A. Use CRC web-based registry by 30.09.2010 Record energy consumption – all fuels, - April 2010 – March 2011 = Footprint Report = baseline. Annual report on energy usage and emissions to E.A. Director statement Buy allowances per tonne CO2 emissions Surrender allowances to match actual emissions Pay – registration fee (£950 probably) – annual fee (£1,300 probably) Initial phase allowances cost £12 each – unlimited Subsequent phases – government cap on number of allowances © Blake Lapthorn 2009 – sealed auction = market sets price
  • 23. Duties if in CRC No VAT on safety valve allowances Submit allowances in July Recycling payments in October Excess allowances sold on secondary market Additional allowances through ‘safety valve’ of E.A. linked to EU Emissions Trading Scheme But first year of Scheme will be ‘reporting only’ Buy allowances April 2011 based on forecast emissions for 2011/12 © Blake Lapthorn 2009
  • 24. Not revenue producing Monies will be pooled Distributed at end of each year according to performance of improved energy efficiency League tables – published twice a year (second version for appeals and corrections) – publicly available Good performers – bonus and cost of allowances paid for Bad performers – reduced payment and/or penalty Recognition if actively engage employees in energy use reduction © Blake Lapthorn 2009
  • 25. Not revenue producing NB Cash flow issues. Capital tied up in allowances before money back via recycling payment but first year now “reporting only” will assist cash flow. League table - how well have you reduced your emissions? 1. Absolute metric – relative change in your CRC emissions 2. Early action metric – energy saving measures put in place before CRC 3. Growth metric - measures change in emissions intensity ie credit if you expand in energy efficient way NB Year one will be based solely on Early action metric © Blake Lapthorn 2009
  • 26. Penalties for non-compliance Failure to register - £5,000 and £500 per day until registered Failure to report - £1,000 Failure to provide annual report - £500 per day of delay Incorrect reporting - £40 per tonne of CO2 - incorrect over 5% tolerance Failure to surrender enough allowances – recycling payment withheld Knowingly provide false information = criminal offence Others E.A. powers of inspection and audit © Blake Lapthorn 2009
  • 27. Why comply? Reduce your energy costs High league table position = bigger share recycling payments Reduce emissions = reduce allowances needed Reputation by league table ranking As allowances costs increase = more cost effective to invest in energy efficiency improvements Get credit for certain specified energy efficiency activities prior to April 2010 eg initial automatic meters and Carbon Standard accreditation (Early Action Metric) Recycling payments received in October (pay for allowances in April) © Blake Lapthorn 2009
  • 28. Other points Combined heat and power credits Renewables credits Changes to group companies Subsidiary which qualifies as a ‘significant group undertaking’ can participate in own right Business expands/contracts Your supplier should help! Franchisor/franchisee Franchisee legal obligation to provide reasonable assistance Landlord and tenant relationship Tenant’s legal obligation to co-operate and assist with compliance © Blake Lapthorn 2009
  • 29. Landlord and tenant Is landlord in CRC? Does he supply energy to tenants? Is tenant in CRC? What about service charge? CRC not linked to building CRC is not a service provided by landlord (it’s a statutory obligation of landlord) CRC is not a ‘tax’ Both help each other to reduce energy consumption Extra landlord rights to carry out energy efficient improvements? How to apportion costs and/or benefits © Blake Lapthorn 2009
  • 30. Green leases Enforceable obligations v Memorandum of Understanding? Consensus, co-operation, flexibility, dialogue Manage costs - control Will tenants accept obligations? What are the valuation implications? Will clauses be flexible enough for future change? What if some tenants accept and others don’t? Existing leases? Australian model – green tenancy schedules - binding Memorandum of understanding - non-binding Half way house? - general obligations in lease plus MoU? © Blake Lapthorn 2009
  • 31. Green leases Landlord and tenant set up energy efficiency funds? Building Management Committee? Alterations – remove and reinstate – banned if adversely affect energy performance - suitable for purpose/sustainability – waive £ for £ basis long term ‘green improvements’ against other dilapidations. Payback payment based on ratio between anticipated life of the green improvement or its payback period (if shorter) and the residue of term. – sustainable materials only (and repairs) Share data Recycling Incentives? Management plan/occupational handbook Environmental Report Biodiversity Transport © Blake Lapthorn 2009
  • 32. Green leases Energy – share data/how to measure/sub-meters Energy efficiency – co-operate to reduce/operational audit/occupation against building maintenance system settings/alter, replace, maintain equipment Waste – share data/measurement Waste efficiency – corporate or reduce and recycle/audits/works waste Water and waste water – share data/measurement/co-operate on reduce and recycle/rainwater collection/sub meter Building operations and share best practice – cleaning contracts Confidentiality of data © Blake Lapthorn 2009
  • 33. If you have questions on this or other related topics, please contact: david.rayner@bllaw.co.uk Blake Lapthorn is an English law firm regulated by the Solicitors Regulation Authority under SRA number 448793 whose rules can be accessed via www.sra.org.uk This presentation is protected by copyright and is not a substitute for detailed advice on specific transactions and problems and should not be taken as providing legal advice on any of the topics discussed. A full list of our partners is available on our website at http://www.bllaw.co.uk/about_us/a_to_z_of_partners.aspx or at any one of our offices http://www.bllaw.co.uk/offices. © Blake Lapthorn 2009

×