CARBON REDUCTION COMMITMENT
THE CRC IS UPON US
he 1st April heralded the start of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC), the Government initiative that aims to encourage businesses to reduce carbon emissions to 34% by 2020. This ambitious target, as well as the implementation of the CRC, has been met with heavy criticism over timing, communication and clarity. However, the CRC can bring some very positive outcomes for organisations if executed correctly..
T
The CRC legislation requires qualified organisations to: • Measure and monitor their energy consumption;
• Calculate the organisation’s carbon emissions;
• Buy allowances per tonne of CO2 their organisation is responsible
for;
• Form part of a league table that will rank organisations in terms of how well they manage to reduce their carbon emissions
To prove registration and to make
Matt Davis, Carbon & Energy Product Manager at IMServ looks at how this new legislation will work, what your business needs to do about it, and how to turn it to your advantage.
accurate carbon footprint judgements, we recommend the capturing and storing of all registration data for the “footprint year” and that companies collect this data by remote data collection methodology. Once the registration process is complete, a company will either have to fill out Footprint and Annual reports for the first year of the scheme that runs from April 2010 to March 2011 or make a declaration that (under the laws relating to parent company, other trading schemes or data volumes) they will not participate fully. The carbon footprint is then calculated based on the energy consumed by each organisation using standard GHG Protocol* calculations to convert this into carbon emitted.
The national league tables will be published annually based on the emissions stated for each organisation. Organisations which improve their carbon footprint will go up the league table and those who do not improve or get worse will see their ranking drop. The final position in the league table will then relate to revenue recycle payments each organisation is entitled to / has to pay. This is the absolute metric and is based solely on the league tables and relative carbon footprint.
In the first three years of the scheme, Early Action Metrics (“EAM”) apply to the scheme and will boost an organisation’s league table position if it is achieved. The first metric is voluntary automatic meter
* The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol, a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development, is a working group for businesses, governments, and environmental groups around the world to build a new generation of credible and effective programs for tackling climate change. Protocol formulas are used in the calculation of carbon footprint records for CRC purposes in the UK.
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SUSTAINABLE FM | APRIL 2010
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