The ABC of the CRC Phase 2
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The UK's Carbon Reduction Commitment (CRC) Phase 2, starting April 2014, introduces new eligibility rules and increased allowance pricing for businesses, aimed at reducing carbon emissions by one-third from 1990 levels by 2020. Most large public and private sector organizations must participate and report annually on their carbon emissions, with costs directly impacting their energy bills. Companies should verify registration eligibility, stay updated on government changes, and establish energy efficiency strategies to adapt to the forthcoming adjustments.
The ABC of the CRC Phase 2
- 1. www.energ.co.uk/procurement The ABC of the CRC Phase 2 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.
- 2. What is it? The CRC Energy Efficiency Scheme is a mandatory government programme that was designed to help achieve the UK’s 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 UK’s 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 UK’s 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.
- 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 you’re 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 you’re 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 you’re 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 you’re 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 Energy Procurement Strategy Download eGuide Now Green and Grid: Ensuring a Coherent CHP and Energy Procurement Strategy How to adopt CHP generation as part of an integrated energy strategy www.energ.co.uk/procurement 01