The CRC Energy Efficiency Scheme (formerly the Carbon Reduction Commitment) is the UK-wide mandatory climate change and energy saving scheme that is due to start in April 2010. To this end, a draft CRC Energy Efficiency Scheme Order 2010 has been published and will be subject to Parliamentary approval at Westminster before it comes into force.
Corporate organisations (of a certain size and level of energy or fuel consumption, or because they generate or supply energy) and the government (both devolved and at Westminster) must participate in the Scheme. Among other things, participation involves registration, providing a one-off “footprint report” and annual reports thereafter. Crucially, participants must buy carbon “allowances”, equivalent to their energy consumption, and will be given payments back later based on their original allowance then enhanced, or reduced, depending on their relative success in reducing their energy consumption. Eventually, the intention is that allowances will be trade-able.
If your organisation is not a participant in the Scheme you may still be affected e.g. if you lease property from a landlord who is due to buy allowances and seeks to pass any associated cost onto you as their tenant.
The Department of Energy and Climate Change has published an updated user guide for the Scheme on its website (www.decc.gov.uk).
To discuss how, or if, the Scheme will impact on your business and any steps to take now, contact:
Contact:
Ralph Riddiough
James Dickson
(Information posted in February 2010 and may not have been updated at time of reading).