Carbon Reduction Commitment

360 Environmental can provide full support for companies affected by CRC. For more information, please complete the form below or email us.

Introduction

• The Carbon Reduction Commitment (CRC) is a mandatory scheme which affects non-intensive energy users such as the retail premises, local authorities and large commercial premises. The CRC is designed to deliver carbon reductions and compliments other legislated initiatives such as the EU Emission Trading Scheme and the UK Climate Change Levy Agreements.
• Businesses which are consuming more than 6,000MWh of electricity through half hourly meters (HHM) are deemed to be full participants in the CRC. Businesses consuming less but possessing HHM’s are required to register for information disclosure only.
• Businesses covered under the UK Climate Change Levy Agreements are exempt from full participation provided more than 25% of the emissions are covered under these agreements.
• The CRC applies to the whole organisation including the highest listed parent company and its subsidiary companies in the UK; therefore the exemption status depends on the company structure. These businesses are still required to register and provide an evidence pack to seek exemption.
• Businesses covered under the CRC are required to register with the Environment Agency.
• Originally, the full participants were required to purchase carbon credits, equivalent to their emissions, in 2011 (Phase 1 of the CRC) from the government at a fixed price of £12/tonne and on an annual basis thereafter at an auction. The money raised was intended to be recycled back to the participants based on their performance. The coalition government has made some changes to the CRC which are listed below and will treat the revenue generated as a tax.
• Full participants are also required to submit an annual report detailing their performance and a footprint report at the beginning of each phase of the CRC.

WHAT HAS CHANGED?

• No revenue recycling – money raised during the sale of carbon credits will be retained by the government and will not be recycled back to the participants.
• The sale of carbon credits will take place in 2012 instead of 2011.
• Phase 1 to last 4 years instead of 3

WHAT HAS NOT CHANGED?

• Registration with the EA
• Annual Reporting
• Performance League Table publication – the performance depends on early action metrics, such as application of the Carbon Trust Standard, number of automatic meters etc

WHAT SHOULD YOU DO NOW (April 2011 – July 2011)?

Submit to the EA a Footprint Report and an Annual Report. You should receive, if not already received, a request from the EA to do so.

• FOOTPRINT REPORT – This report, to be submitted once in each phase, should contain amongst other, the following;
  • Core energy use during April 2010 – March 2011
  • Electricity generating credits
  • Change in Climate Change Levy Agreement 
  • Renewable Obligation Certificates or Feed in Tarrifs
  • Other fuel use
  • Organisational changes
• ANNUAL REPORT – This is to be submitted each year and should contain amongst other the following;
  • Core energy use
  • Electricity generating credits
  • Changes in Climate Change Levy Agreement status
  • Renewable energy use
  • Early Action Metrics
  • Growth Metric data
• EVIDENCE PACK – You are also required to keep an evidence pack which should help you in case of an Environment Agency audit. This should contain;
  • Organisational structure
  • Energy supply data summaries
  • Where primary data is held
  • Explanation of changes
  • Records of internal audits to support what has been submitted to the EA. Internal audits are required by the CRC order, should be regular and signed by a senior officer.

For further information:

Environment Agency
SEPA
NIEA
DECC