The ABC of the CRC Phase 2 The UK’s Carbon Reducon Commitment Energy Efficiency Scheme will mean changes for businesses when Phase 2 begins – the rules for eligibility are different and the allowance pricing is set to increase. www.energ.co.uk/procurement
The UK’s Carbon Reduction Commitment Energy Efficiency Scheme will mean changes for businesses when Phase 2 begins – the rules for eligibility are different and the allowance pricing is set to increase.
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1. www.energ.co.uk/procurement The ABC of the CRC Phase 2 The
UKs Carbon Reduction Commitment Energy Efficiency Scheme will mean
changes for businesses when Phase 2 begins the rules for
eligibility are different and the allowance pricing is set to
increase.
2. What is it? The CRC Energy Efficiency Scheme is a mandatory
government programme that was designed to help achieve the UKs
Carbon Reduction Commitment goals of cutting carbon emissions.
Carbon reduction goal: by 2020, to reduce carbon emissions in the
UK by a third from 1990 levels.
3. What is it? The CRC Energy Efficiency Scheme is a mandatory
government programme that was designed to help achieve the UKs
Carbon Reduction Commitment goals of cutting carbon emissions.
Carbon reduction goal: by 2020, to reduce carbon emissions in the
UK by a third from 1990 levels.
4. What is it? The CRC Energy Efficiency Scheme is a mandatory
government programme that was designed to help achieve the UKs
Carbon Reduction Commitment goals of cutting carbon emissions.
Carbon reduction goal: By 2020, to reduce carbon emissions in the
UK by a third from 1990 levels.
5. Who participates?
6. Who participates? Most large public and private sector
organisations must participate in the CRC scheme.
7. Who participates? Most large public and private sector
organisations must participate in the CRC scheme. 10% of UK carbon
emissions are produced by large public and private sector
organisations.
8. Eligible organisations for Phase 1: Those using more than
6,000MWh of electricity through half-hourly meters in 2008 (when
scheme began). This equates to around 500,000 per year in energy
bills.
9. How does the CRC currently work?
10. 1 How does the CRC currently work? Participants must report
annually on their carbon emissions.
11. 1 2 How does the CRC currently work? Participants must
report annually on their carbon emissions. Participants buy
allowances to offset their carbon emissions.
12. 1 2 3 How does the CRC currently work? Participants must
report annually on their carbon emissions. Participants buy
allowances to offset their carbon emissions. Companies who reduce
their carbon emissions decrease the number of allowances they need
to buy.
13. When does it all happen? The CRC is divided into phases.
APR 2010
14. When does it all happen? The CRC is divided into phases.
Phase 1 Phase 1 runs from April 2010 to March 2014. Cost of
allowances: 12 per tonne of carbon emitted. APR 2010
15. What this looks like on your bill:
16. What this looks like on your bill: Approx 0.65p/kWh on
electricity costs (39,000 on 6,000MWh).
17. What this looks like on your bill: Approx 0.65p/kWh on
electricity costs (39,000 on 6,000MWh). Approx 0.22p/kWh on gas
costs
18. Phase 2 There is a second phase for the CRC and all the
rules change! The rules for eligibility are different and the
allowance pricing will increase over time. Phase 2 runs from April
2014 to March 2019. All organisations must re-apply for Phase 2!
APR 2014
19. The current timeline for the CRC 4 November 2013 to 31
January 2014: Companies must register for Phase 2.
20. The current timeline for the CRC April 1 2014: Phase 2
starts.
21. The current timeline for the CRC Q2 2015: First annual
reports due for Phase 2.
22. The current timeline for the CRC March 2019: Phase 2
ends.
23. The current timeline for the CRC 2019 to 2039: Four more
phases of five years each.
24. The current timeline for the CRC 2039: Final phase
starts.
25. What to look out for in Phase 2
26. What to look out for in Phase 2 Carbon prices will go up
after April 2014! The government is putting legislation in place
suggesting that allowances may be auctioned or traded in Phase
2.
27. What to look out for in Phase 2 Carbon prices will go up
after April 2014! The government is putting legislation in place
suggesting that allowances may be auctioned or traded in Phase 2.
Companies qualify for Phase 2 if they consumed over 6000MWh of
total half-hourly electricity during the qualification year (April
2012 to 31 March 2013). Further criteria apply if any site holds a
Climate Change Agreement (CCA) or participates in the European
Union Emissions Trading Scheme.
28. What to look out for in Phase 2 The government has made 46
changes that aim to create a new, leaner, simplified and refocused
CRC. These include the removal of the 90% rule (which requires all
participants to account for at least 90% of their carbon footprint
emissions) and fewer fuels to report on.
29. What should I be doing?
30. What should I be doing? Phase 2 will bring the CRC back
into focus for UK businesses, because allowance prices may
fluctuate. So:
31. What should I be doing? Phase 2 will bring the CRC back
into focus for UK businesses, because allowance prices may
fluctuate. So: Check if youre eligible for registration.
32. What should I be doing? Phase 2 will bring the CRC back
into focus for UK businesses, because allowance prices may
fluctuate. So: Check if youre eligible for registration. Keep
up-to-date with government updates surrounding CRC.
33. What should I be doing? Phase 2 will bring the CRC back
into focus for UK businesses, because allowance prices may
fluctuate. So: Check if youre eligible for registration. Keep
up-to-date with government updates surrounding CRC. Develop an
energy efficiency strategy.
34. What should I be doing? Phase 2 will bring the CRC back
into focus for UK businesses, because allowance prices may
fluctuate. So: Check if youre eligible for registration. Keep
up-to-date with government updates surrounding CRC. Develop an
energy efficiency strategy. Make sure that you measure and record
on energy consumption in a suitable format.
35. Do you have a CHP to reduce your carbon emissions and the
impact of the CRC? Download your eGuide to ensure your supply
procurement is aligned: Green and Grid: Ensuring a Coherent CHP and
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Ensuring a Coherent CHP and Energy Procurement Strategy How to
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