Overview

The Carbon Reduction Commitment (recently renamed the CRC Energy Efficiency Scheme) is the UK's first mandatory carbon trading scheme.

The initial phase of the Carbon Reduction Commitment (CRC) is compulsory for organisations that consume over 6,000,000 kWh of half-hourly metered electricity during the qualifying period from January 2008 to December 2008. This roughly equates to an electricity bill of £500,000 per year.

Aim of the Carbon Reduction Commitment

The aim of the CRC is to reduce the level of carbon emissions currently produced by the larger 'low energy-intensive' organisations by approximately 1.2 million tonnes of CO2 per year by 2020. The scheme aims for a 60% redution in CO2 emissions by 2050.

Coverage of the Carbon Reduction Commitment

The CRC covers both public and private sector organisations. Phase 1 of the carbon reduction scheme is expected to affect approximately 5,000 organisations in the UK. The scheme aims to target 25% of total business sector emissions within the UK.

The introductory phase starts in April 2010, but many organisations need to prepare before that date to ensure that they comply with all legal requirements and fully participate in the scheme.

Qualification for the CRC Scheme

Qualification for CRC depends on how much electricity your organisation consumed through half hourly meters during 2008. To identify how your organisation qualifies for CRC you will have to understand the structure of your organisation and know the entire organisation’s electricity consumption during the qualification year, 2008.

There are 2 types of qualifying organisation: Information Disclosure and Participant.

If during 2008 your organisation had at least one bill settled on the half hourly market and you consumed:

• less than 6,000 MWh of electricity through all of your Half Hourly Meters, you are required to make an Information Disclosure

• or

• more than 6,000 MWh of electricity through all of your Half Hourly Meters, or you are a central government organisation, you are required to register as a Participant.

The Role of IT in the Carbon Reduction Commitment

The IT organisation can play a major role in reducing carbon consumption for example by employing best practice in energy management (turn PC's off at night, virtualisation in datacentres, even outsourcing) and also in supporting the management and reporting of energy usage.

Altica can provide practical, specialist advice on reducing your carbon footprint and complying with the CRC regulations.

We can also help you to minimise your costs and even generate revenue from the CRC when carbon trading commences at a fixed cost per unit in 2011 and on the open market in 2013.

Contact Altica for information on .