The Department of Energy and Climate Change (DECC) has announced the final details of the Government’s Carbon Reduction Commitment (CRC) including improvements made after business and trade body consultation.
The CRC, a new regulatory incentive to improve energy efficiency in large public and private sector organisations, has had its final alterations before implementation in April 2010.
Following consultation with businesses and trade bodies the following improvements have been made:
- To smooth the introduction of the scheme, in the first year (2010/11) participating organisation will only have to report their emissions. In subsequent years the organisations will have to buy allowances corresponding with their emissions from energy use and surrender any excess by the end of the year.
- In the second year (2011/12) extra weighting will be given to organisations which take early action to improve energy efficiency.
- Recognition will be given to organisations which use onsite renewable energy by publishing the increased carbon savings from such measures.
- Subsidiaries of organisations which are large enough to qualify for the scheme in their own right, (at least 6000MWh) may now opt to do so separately from their organisational group.
- Taking into account the primary focus of the scheme, the CRC will now be known as CRC Energy Efficiency Scheme.
Participation in the CRC Energy Efficiency Scheme is mandatory for organisations whose half hourly metered electricity use is at least 6,000 MWh. These will be the country’s largest energy users, organisations which spend around £500,000 a year on electricity.
Joan Ruddock, Energy and Climate Change Minister, said:
"Large organisations have huge potential to achieve cost-effective energy efficiency savings. There are clear benefits from positive, immediate action to tackle climate change. Investment that takes place in the next few decades will have a profound effect on the climate in the second half of this century and in the next.
"The CRC Energy Efficiency Scheme will help organisations to become more energy efficient, to save significant sums of money on fuel bills, and to show customers, clients and competitors that their organisation is a leader in tackling climate change."
The CRC Energy Efficiency Scheme is expected to save participants around £1 billion and save at least 4.4 million tonnes of CO2 per year through cost effective energy efficiency schemes that are not yet being taken up.
Posted under Energy Efficiency and Environmental Regulations and Legislation on 12 October 2009