Carbon Trust Standard

On the 7th October, DECC announced the government’s response to and policy decisions on the Consultation on the draft order to implement the Carbon Reduction Commitment. Key changes are listed below but participants should read full details on all changes and clarifications on the DECC website.

• Significant Group Undertakings (formerly Principal Subsidiaries).  Organisations will be given greater flexibility in how they participate. Significant Group Undertakings (SGU) who are large enough to qualify in their own right (at least 6000MWh) may opt to do so separately from their organisational group.
   
• April 2011 sale of allowances. Government has decided that the first compliance year of the scheme (April 2010-March 2011) will be a reporting-only year. This means that in the Government sale in April 2011 each Participant may purchase allowances for the compliance year April 2011 – March 2012 only and will not be required to purchase allowances for the first compliance year.
   
• Early Action metric. Government will now accept the Carbon Trust Standard or equivalents in respect of the Early Action metric. The Environment Agency has not yet identified any such equivalents but have outlined criteria of any such scheme including:
  
  • Data is required over a three year period, and must demonstrate either an absolute emissions reduction, or at least a 2.5% per annum relative emissions reduction;
  • The reductions cannot be achieved through the use of offsets, and (consistent with CRC) all purchased electricity must be treated at grid average;
  • Reductions are measured in terms of emissions rather than energy consumption;
  • A high quality energy or carbon management system is required, focusing on measurement, management and reduction and that is transparent.
     
• Weighting of metrics. Government has decided that the weightings of the metrics will allow for greater weight to the Early Action metric in the second year of the scheme.  This means that in year two the ratio of metrics will be Absolute metric 45%; Early Action Metric 40%; and Growth metric 15%.

• Recognition for renewable generation. Data that details the carbon savings of Participants from increased onsite renewable energy generation will be published alongside but separate from the league table.
   
• Other changes and clarifications are available on the DECC website.