Achieving The Carbon Trust Standard can save you money directly, if your organisation is covered by the Carbon Reduction Commitment Energy Efficiency Scheme (CRC). The CRC is the Government’s new carbon trading scheme for larger organisations and comes into force in 2010.
The Carbon Reduction Commitment (CRC)
The CRC is a new carbon trading scheme developed by the Government for non-energy intensive organisations. The new scheme will be operational in April 2010 and covers electricity and gas consumption, and potentially other fuel sources. The Government has published revisions to the CRC on 7th October 2009. More details are available on the DECC website.
Participation in the scheme is based on electricity consumption in 2008. Organisations with more than 6,000MWh consumption measured through half hourly electricity meters will be covered by the new scheme. Significant Group Undertakings (SGUs) formerly referred to as principal subsidiaries can now register as participants in their own right if they meet the criteria.
Benefit of the Carbon Trust Standard
Achieving the Carbon Trust Standard reduces the costs of participation in the first three years of the CRC.
Participants in the CRC must purchase carbon allowances to cover their emissions (£12/tCO2 in the first phase). This money is paid back to participants each year “revenue recycling” – but participants get more or less money depending on their rank in a league table.
Organisations that achieve the Carbon Trust Standard achieve a higher ranking in the league table in the first phase of the CRC. This is because the Carbon Trust Standard is a designated ‘early action metric’ in the CRC.
To receive this benefit organisations must have a valid Carbon Trust Standard certificate for each year of the CRC.
Financial Return
The savings by achieving the Carbon Trust Standard could be significant – potentially worth up to £1.20/tCO2 in 2011. Please contact our team for more information on how much money your organisation could save.
The Carbon Trust Standard is responsible for a significant proportion of the league table ranking points in the CRC:
- Year 1: 50%
- Year 2: 20%
- Year 3: 10%
In 2011 the recycle payment will be up to +/- 10% of the cost of the carbon allowances purchased. This means that achieving the Standard could reduce your compliance costs by up to £1.20/tCO2 emitted.
Alongside the financial return, the Standard will improve your environmental reputation by boosting your league table position vs. competitors.