Is your company ready for the CRC Energy E≈ciency Scheme?
Registrations for the CRC Energy Efficiency Scheme opened on 1 April 2010. Tony Grayling, Head of Climate Change & Sustainable Development at the Environment Agency, explains what businesses need to do to prepare for the government’s carbon reduction scheme
The CRC Energy Efficiency Schemeis a new energy
saving scheme designed to ensure that large organisations in the public and private sectors do their bit towards tackling climate change. The UK has made a commitment to reduce greenhouse gas emissions by at least 80 per cent from 1990 levels by 2050. This is a tough target – which will require every part of our economy and society to do their bit. The CRC has been set up to deliver at least four million tonnes of carbon dioxide (CO2
) emissions per year by 2020
through saving energy. Analysis for the Environment Agency, however, suggests that the cost effective potential is actually up to 11.6 million tonnes – the equivalent to tak- ing roughly four million cars off the road.
Potential cost savings
The scheme will also save organisations money through reduced energy bills – ben- efiting the economy overall by at least £1billion a year by 2020, making it a valu- able business opportunity across a range of sectors. For example, office-based activities are responsible for the emission of around seven million tonnes of CO2
per year. It is
Do you qualify?
The threshold to qualify as a full participant in the scheme is determined by 2008 electricity consumption: if your organisation has at least one half-hourly electricity meter and consumed at least 6,000 mega-watt-hours of electrici- ty through all of its meters during 2008 (equivalent to an electricity bill of around £500,000), then you will need to participate in the scheme by monitoring energy consump- tion and purchasing allowances. However, if your organisation has one or more half- hourly meters but consumed less than this amount of elec- tricity it will be an Information Declarer. This means that all you will need to do is identify your half-hourly meters and you will not have to purchase allowances.
estimated that energy savings of up to 20 per cent are possible, equivalent to £157 million per year. From 1 April 2010, large private and pub- lic sector organisations that had a half hourly meter during 2008 must register under the scheme. Around 20,000 organisations need to register for the scheme with the Environment Agency before the 30th September 2010. Of these, around 5,000 will have a large enough electricity consumption to qualify as full participants in the scheme. Compliance with the CRC Energy Efficiency Scheme
have the choice between viewing CRC as a benefit or a cost. CRC can be a cost on poor energy management or a financial incentive for low carbon leadership
“Organisations
”
will require financial, audit and carbon management adjustments to be made by participating organisations. By planning and preparing for these now, participating organisations can not only make sure they fulfil their legal duty, but that they can make the most of the oppor- tunities offered by the scheme in cutting energy bills, reducing upfront CRC payments, increasing payouts from the scheme and enhancing their reputation.
12 » www.executivepa.com » Apr/May 2010
Be prepared
It’s important to understand how CRC will affect your organisation. You will need to decide who will be responsible for the ongoing data collection and CRC report- ing. In most organisations the day-to-day CRC management would be dealt with by an energy or facilities manager, but it is important that the CRC is understood, and supported, at an executive and board level. You will also need to make sure all the
preparation has been made so that the right data is collected. Under CRC you will need
to report all of your emissions in the first year, and then after that you will need to monitor your fuel and energy use as well as reporting your CRC emissions to the scheme administrator at the end of each compliance year. Participants successful in reducing energy consump- tion will not only save money on energy bills, they will also receive financial and reputational incentives. These savings should be well in excess of the costs of partici- pating in the scheme. Organisations that perform well will also be placed higher in the Performance League Table, which will be published annually by the Environment Agency. In an age of eco-conscious public, being higher up the league table will have the added ben- efit of enhancing the organisation’s reputation.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44