FAQ – Carbon reduction commitment
What is carbon reduction commitment (CRC)?
As part of the Climate change Bill, Carbon reduction commitment is a mandatory cap and trade on carbon emissions applying to large non energy intensive organisations and private sections. The proposed scheme has a target to cut carbon emissions by up to 1.2 million tonnes per year by 2020.
Where does the carbon reduction commitment orginate?
CRC was introduced in the UK Governments 2007 UK white paper titled “Meeting the Energy Challenge” as one part of a larger strategy to combat the environmental impacts of climate change.
Should I comply with the CRC scheme?
Yes, it is a new legal requirement for business. If your organisation will be included in CRC if it has at least one meter settled on the half-hourly market and the total electricity usage of the organisation is greater than 6,000 MWh.
How is CRC participation measured?
Energy data for 2008/2009 will be used as qualifying criteria and you are required by law to participate. In general, if your organisation spends more than £500,000 a year in the UK on electricity, you are likely to be included in the scheme. There are high penalties for either late submission or failure to apply.
When does Carbon reduction commitment start?
The scheme officially starts in April 2010 and will be divided into time periods known as ‘phases’. The first phase is the Introductory Phase and will last for 3 years of the scheme. Subsequent phases will last for 7 years, and includes 2 preparatory years which will overlap with the previous phase.
How is Carbon reduction commitment managed?
Participants will be required to submit annual data statements. Each phase is comprised of a number of consecutive compliance years which run from April to March, like financial years. There are no gaps or breaks between phases or compliance years.
What if our organisation is below the carbon reduction threshold?
Companies who use less energy will also be required to submit energy consumption data but will not come under the scheme presently.
Emtac’s accredited energy consultants can ensure your organisation is compliant with the Carbon reduction commitment scheme, if you would like to discuss your requirement with us, please telephone us on 01909 564 044 or use our online contact form.
