Ethical Corp presentation - Close Up On The CRC

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This is a presentation on challenges and strategies for adapting to the UK cap-and-trade scheme: the Carbon Reduction Commitment (CRC) Scheme.

It was delivered at the 2009 Ethical Corporation

Published in: Business, Technology
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Ethical Corp presentation - Close Up On The CRC

  1. 1. Business responses to the CRC CR Reporting & Communications Summit 25 November 2009 Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 Pam Muckosy, Ethical Corporation Co-presenter on the CRC: Jane Dennet-Thorpe, DECC
  2. 2. Why regulate? Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 1/3 of UK’s total emissions Emissions from non-energy intensive companies expected to increase 11% between 2010-2030 Encourage attention on an item representing as little as 1% of operating cost 1/3 in the UK do nothing & 1/5 say climate change is not on the agenda
  3. 3. How simple to implement… Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 An incentive-based design A light touch, light penalties Facilitates gradual progress Easy reporting – if you have measured Self disclosure
  4. 4. … yet some challenges Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>Not a panacea for climate change - does not cover non-CO2 gases, transportation, water, biodiversity, and other topics </li></ul><ul><li>Renewables fall under separate regulation </li></ul><ul><li>Challenges for transport </li></ul><ul><li>Ambitious enough? – random audits and need for verification </li></ul><ul><li>Exceptions & boundaries </li></ul>
  5. 5. Case study: the tenant Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>Long-term investment without long-term rewards </li></ul><ul><li>Different results & strategies </li></ul><ul><li>Lack of transparency </li></ul><ul><li>Shared facilities </li></ul>
  6. 6. Case study: the landlord Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>Lack of control over use and management </li></ul><ul><li>Impact on business model and fees or service charge </li></ul><ul><li>Metering and monitoring </li></ul><ul><li>Initial cost burden when purchasing allowances </li></ul>
  7. 7. Case study: data collection Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>M & A </li></ul><ul><li>Need for a mandate on suppliers </li></ul><ul><li>Estimated billing is not enough </li></ul>
  8. 8. Case study: abatement strategy Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>Stalled progress due to planning permissions </li></ul><ul><li>A significant investment for grocery stores </li></ul><ul><li>Potential to game the system & manipulate league table rankings </li></ul>
  9. 9. Case study: renewables Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 <ul><li>ROCs </li></ul><ul><li>Requested: </li></ul><ul><ul><li>Focus on consumption, not footprint </li></ul></ul><ul><ul><li>Renewables as 0 carbon </li></ul></ul><ul><ul><li>Maintain renewable subsidies </li></ul></ul><ul><ul><li>Transparency to end consumer </li></ul></ul>
  10. 10. Costs Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009
  11. 11. What to watch for Why regulate How simple Challenges Case studies What to watch for Pam Muckosy Ethical Corp 04 11 2009 Rise in current carbon cost from £30/tonne Companies doing more in-depth measurement April deadline; September deadline and fines Companies aiming to reach the top of the league table in year one
  12. 12. WWW.ETHICALCORP.COM/CRC Thank you If you would like internal training, or to be added to our research mailing list, please email me at Pam.Muckosy@ethicalcorp.com or visit www.ethicalcorp.com/training

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