Embargoed until
00:01, 7th October 2009
Reducing energy use will save organisations a total of
£1billion and more than 4MtCO2 each year by 2020
The final details of the Government's scheme to save
organisations money on fuel bills and to reduce carbon emissions
have been unveiled today by the Department of Energy and Climate Change.
The Carbon Reduction Commitment Energy Efficiency Scheme is a new
regulatory incentive to improve energy efficiency in large public
and private sector organisations. Large energy users in business
and the public sector will be required to take part in the scheme
from 1st April 2010.
Following extensive consultation with businesses and trade
bodies, DECC has made some improvements to the scheme:
* To smooth the introduction of the scheme and to help ease the
upfront costs, organisations will only have to report emissions in
the first year (2010/11). In subsequent years organisations will
have to buy allowances corresponding to their emissions from
energy use, and then surrender them by the end of the year.
* In the second year (2011/12) extra weighting will be given to
organisations which take action early to improve energy efficiency.
* Recognition will be given to organisations which use onsite
renewable energy like wind turbines or solar panels by publishing
the increased carbon savings from such measures.
* Organisations will be given greater flexibility in how they
participate. Subsidiaries who are large enough to qualify in own
right (at least 6000MWh) may opt to do so separately from their
organisational group.
* Given the primary focus of the scheme is energy efficiency, the
CRC will now be known as CRC Energy Efficiency Scheme.
Energy and Climate Change Minister Joan Ruddock said:
"The UK is leading the way in tackling climate change
and in the move to a low carbon economy. Organisations and the
public sector must play a central role including all government
departments, regardless of size.
"Large organisations have huge potential to achieve
cost-effective energy efficiency savings. There are clear benefits
from positive, immediate action to tackle climate change.
Investment that takes place in the next few decades will have a
profound effect on the climate in the second half of this century
and in the next.
"The CRC Energy Efficiency Scheme will help
organisations to become more energy efficient, to save significant
sums of money on fuel bills, and to show customers, clients and
competitors that their organisation is a leader in tackling
climate change."
The CRC will help to ensure that large organisations play their
full role in contributing to our emissions reductions of at least
34% on 1990 levels by 2020 through improved energy efficiency.
The scheme is mandatory and will save participants around
£1billion per year by 2020 through cost effective energy
efficiency measures that are not yet being taken up.
By 2020 the scheme is expected to have delivered emissions
savings of at least 4.4 Mt CO2 per year.
The scheme will target organisations whose annual half hourly
metered (HHM) electricity use is at least 6,000 Megawatt hours
(MWh) will qualify for the scheme - typically those that spend
£0.5 million a year on electricity. The Environment Agency will
publish the qualification and registration guidance for potential
CRC participants by November.
The basic timeline for CRC remains;
First phase - The three year 'Introductory
Phase' starts in April 2010. An unlimited number of
allowances will be available at a fixed price of £12/tCO2. From
the second compliance year onwards, participants will annually
have to purchase allowances, monitor energy use, report emissions
and surrender allowances. Participants will also receive a revenue
recycling payment each year.
Phase 2 -From 2013 Government will cap the number of allowances
available each year and all allowances will be auctioned. The cap
will be set taking into account advice from the Committee on
Climate Change which they will provide in 2010.
Case Studies
The below organisations fall within the remit for CRC and would
be happy to be contacted for media purposes;
* HILTON HOTELS Press Office contacts 020 7856 8076 or email: Jules.Kerby@hilton.com
* GUY'S AND ST THOMAS' NHS FOUNDATION TRUST
Press Office contacts 020 7188 5577 or email: press@gstt.nhs.uk
* THE NATIONAL THEATRE
Press Office contact details: 020
7452 3235 or email: press@nationaltheatre.org.uk
* LONDON FIRE BRIGADE
Press Office contacts: 020 8536 5922 or email: press@london-fire.gov.uk
Notes to editors
1. You can find the Government Response to the consultation on
the Draft Order to Implement the CRC at; http://www.decc.gov.uk/en/content/cms/consultations/crc/crc.aspx
2. Guidance for scheme participants will be published by the end
of October by the Environment Agency in conjunction with the
scheme administrators in the Devolved Administrations, and after
consultation with the Devolved Administrations and DECC. Contact
crchelp@environment-agency.gov.uk
for more information.
3. CRC is a UK wide scheme and the policy has been developed by
the Department of Energy and Climate Change, the Scottish
Government, the Welsh Assembly Government and the Department of
the Environment Northern Ireland working in partnership. In this
document, Government refers collectively to the UK and Devolved Administrations.
4. The registration window for CRC will begin in April 2010, and
last until the end of September 2010.
5. Participating organisations will have to register with the
Environment Agency who will administer the scheme. The Government
is already providing advice and financial incentives to help
organisations take practical steps to improve their energy
efficiency through the Carbon Trust and Climate Change Agreements.
6. All organisations whether they are taking part in Climate
Change Agreements, the CRC, or are simply small organisations
outside any regulatory scheme wishing to cut their energy bills
can find assistance through the Carbon Trust which provides advice
to organisations on what practical steps they can take to improve
energy efficiency, and also help to develop low carbon products
and services.
7. CRC provides the policy framework to ensure the existing best
practice of our leading organisations will be more widely taken
up, and in which carbon becomes correctly considered, reported and
valued. The scheme sits alongside the Voluntary Reporting
Guidance, published by Government last week explaining how all
organisations should measure and report their greenhouse gas
emissions, including those organisations captured by the CRC.
8. As part of our Impact Assessment we have done some modelling
of various scenarios based on uncertain abatement potential
incentivised by an assumed allowance price trajectory to 2020. The
variation in figures has led us to conclude that there are
substantial energy efficiency savings to be made in this sector.
We intend to set a cap which is challenging but achievable, after
taking into account the advice of the CCC.
Department of Energy and Climate Change
7th Floor, 3
Whitehall Place, London, SW1A 2HD
Press enquiries +44 (0)20
7270 5217 Public enquiries +44 (0)300 060 4000
Textphone +44
(0)20 7215 6740 (for those with hearing impairment)
Press Notice Reference: 2009/110
Contacts:
Department of Energy and Climate Change
nds.decc@coi.gsi.gov.uk
Philippa Heap
Phone: 0300 068 5218
philippa.heap@decc.gsi.gov.uk