CRC Energy Efficiency Scheme – Confused?Kerry Hamilton – March 2011
Government Spending Review• The CRC Energy Efficiency scheme will be simplified to reduce the burden on businesses, with the first allowance sales for 2011-12 emissions now taking place in 2012 rather than 2011. Revenues from allowance sales totalling £1 billion a year by 2014-15 will be used to support the public finances, including spending on the environment, rather than recycled to participants. Further decisions on allowance sales are a matter for the Budget process
What We Know Government launched a consultation to amend the scheme legislation in December 2010DECC have since issued discussion documents in January covering a wide range of options for simplification of the scheme. The closing date for comments is the 11 March 2011Annual and Footprint reporting will still go ahead as planned. You will be required to submit an annual report and footprint report before the 29th July 2011. The Performance League Table will be retained as the main reputational driver within the scheme, with the metric weightings and publication dates as envisaged in the current legislation (including the October 2011 table)
Metric Investment Have we wasted time and money on early action metrics?No!• AMR enables you to budget accurately for cost and track energy reduction projects and consumption efficiently.• The Carbon Trust Standard or equivalent encourages stakeholder engagement and ensures good Energy Management processes are in place.
CRC Energy Efficiency Scheme The CRC isn’t going away£12 per ton of CO2 will now be kept by the government Creating £1billion a year revenue for the TreasuryDECC have completed a stakeholder meeting this month engaging in discussion about future developments
CRC Energy Efficiency SchemeParticipants still need to cut energy consumption Carbon Reduction Commitment CRC Energy Efficiency Scheme
CRC Energy Efficiency Scheme Deadlines will be deadlines Register Footprint Report Annual Reports30th Sept 2010 29th July 2011 Every July Evidence Pack
CRC Energy Efficiency Scheme Nobody has been fined…yet!Estimated Number of CRC Participants 5,000Number of Participants Registered 3,000Number of Participants that need to Register 2,000Fixed Fine for failing to register £5,000Total revenue from fixed fine for 2,000 participants £10millionDaily fine for failing to register £500Daily fine from non-registered 2,000 participants £1million
CRC Energy Efficiency Scheme The CRC has started Participants should already be collating data and preparing for the reporting deadlinesFootprint year is nearly over......
CRC Energy Efficiency Scheme1 Comply with all legal requirements Complete registration Produce Footprint and Annual Reports Develop and maintain the Evidence Pack Avoid fines
CRC Energy Efficiency Scheme2 Calculate a CRC budget CRC Fees CRC Costs Energy CO2 Reductions Allowances
CRC Energy Efficiency Scheme3 Develop a Strategy CRC
CRC Energy Efficiency Scheme4 Cut CO2 emissions CO2
CRC Energy Efficiency Scheme5 Maximise the benefits of the scheme P
Are there Benefits?CRC Requires accurate information to be compiledAll fuels must now be consideredCRC has brought Carbon to The Board AgendaThe Scheme will require organisations to adopt best practiceMakes energy Projects viable
Don’t DelayYou must ensure that you comply with therequirements of the scheme it won’t go away!