Climate Change:

Climate Change
Managing Climate Change with Edensave Energy IntelligenceBuildings 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 current 2nd Phase of the CRC (April 2014-March 2019), particpants will have to monitor their emissions and buy emissions allowances equal to their carbon footprint at a price per tonne of CO2 of £16.10 Forecast Sale Price and £16.90 Compliance Sale Price (2015/16).

The first step is to decide whether you will buy allowances in advance at the cheaper price and hope you have enough allowances to cover your actual emissions or wait and 'buy to comply' after the reporting year. If not enough allowances are bought at the forecast stage companies can 'top-up' the forecast allowance at the higher compliance price.

You can request an annual statement from suppliers on the total energy consumption through each meter in order to be able calculate your total electricity and fossil fuel use and therefore calculate total CO2 emissions for the reporting year. The deadlines for submissions are: Annual Report on total CO2 emissions 31th July; order of allowances between 1st June and 31st July; payment with Memorandum of Account between 1st and 18th September; submission of allowances by 30th October.

The CRC entered the 'capped' stage in April 2013 where the government limits 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.

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. Give yourself the capability to make sure any action taken has produced the required reduction in CO2 emissions before the end of the year.