The Carbon Reduction Commitment (CRC), a new carbon emissions trading scheme that will affect large organisations in the UK, started in April 2010. It is primarily aimed at commercial and public sector organisations and is intended to sit alongside Climate Change Agreements (CCAs).
Firstly the Environment Agency (EA) has written to all companies that consumed electricity through at least one half-hourly electricity meter (HHM) during the 2008 qualification period, to make them aware of the new CRC scheme. Any bakers who do not buy electricity through an HHM will not be affected
Yet even if your firm is in a CCA, it could be affected by the CRC if a) it has at least one HHM; and b) the electricity through all HHMs in the firm exceeded 6,000MWh in 2008.
All companies that buy electricity through HHMs will need to take some action, either to prove that consumption is below the 6,000MWh threshold or to register for the CRC. If less than 6,000MWh of electricity was consumed through HHMs, there is still a requirement to make an Information Disclosure.
Any firm that meets the criteria will need to register for the scheme, administered by the EA. However, the CRC is designed to allow organisations with CCAs to be then exempted from the CRC, provided the CCA covers at least 25% of the firm’s emissions.
Registration for the CRC scheme must take place before 30 September 2010. Right now, it is taking between three to five weeks for the EA to do the validation and there will be penalties for qualifying companies that do not register or register late.
Details can be found at www.environment-agency.gov.uk/crc, or the NAMB’s Climate Change helpline, 0161 874 3668.