Climate Change
Buildings account for approximately 46% of all energy consumption according to the Digest of Energy Statistics and a similar proportion of CO2 emissions in the UK.
CO2 emissions are among the basket of 'greenhouse gases' responsible for global warming that is thought to be causing increased droughts in some areas, increased flooding in others, decreased crop production and more unstable weather conditions.
In November 2008 the Uk government passed the Climate Change Act which sets legally binding targets for reducing emissions by a very ambitious 80% on 1990 levels by 2050. There is a variety of legal instruments in place to achieve this reduction such as the EU-ETS (European Union Emissions Trading Scheme) for energy intensive industries like power generators and the CRC (Carbon Reduction Commitment) for less energy intensive industries. Both are 'Cap and Trade' schemes that set a limit on the amount of CO2 that can be emitted.
Carbon Reduction Commitment (CRC)
The CRC is a mandatory, auction-based emissions trading scheme aimed at large non-energy intensive organisations such as local authorities, hotel chains, banks, supermarkets, universities and water companies. Your organisation will qualify if during 2008 you had at least one half hourly electricity meter settled on the half hourly market and you had a total half hourly electricity consumption of at least 6,000 MWh.
In the introductory phase of the CRC (April 2010-March 2013), particpants will have to monitor their emissions and buy emissions allowances equal to their carbon footprint at a price of £12 per tonne of carbon dioxide.
The first step will be getting a comprehensive and accurate record of your organisation's CO2 emissions in the Footprint Year April 2010 - March 2011. Allowances will have to be submitted at the end of the year to the government for all CO2 emitted.
You can request an annual statement from suppliers on the total energy consumption through each meter in February 2011 in order to be able calculate your total electricity and fossil fuel use and therefore calculate total CO2 emissions for the year ending March 2011. The report on total CO2 emissions must be submitted by 29th July 2011.
The CRC will enter the 'capped' stage in April 2013 where the government will limit the number of allowances and auction them to the highest bidder. If your firm ends up with more allowances than needed to meet your obligations at the end of the year, you can sell them on the secondary market. If you end up with a shortfall you will have to buy additional allowances or face a punitive fine.
Revenues raised through the sale of allowances are recycled back to participants via performance in publically available league table. Organisations with a better than average league table position may receive back more money than they put in.
Edensave Energy Intelligence allows you to easily monitor your CO2 emissions throughout the year, not just at the end of the year when you are submitting your allowances and your emissions report. Avoid the humiliation and expense at the bottom end of the league table by being aware of your emissions throughout the year. Give yourself the capability to make sure any action taken has produced the required reduction in CO2 emissions before the end of the year.