CRC & Carbon Credits
WHAT IS THE CARBON REDUCTION COMMITMENT (CRC)?
The CRC is a UK mandatory cap and trade scheme proposed to cut carbon emissions by 1.2 million tonnes of carbon per year by 2020. The key is energy efficiency and the reduction of emissions. Organisations will have to devise a carbon abatement strategy, consider energy efficient measures, monitor, assess and manage their carbon emissions.
ARE THERE ANY EXEMPTIONS?
Emissions covered within the EU-ETS (EU Emissions Trading Scheme) and CCA’s (Climate Change Agreements) are exempt. Subsidiary organisations with over 25% of their emissions within CCA’s will be exempt, but not the whole CRC organisation.
WHEN DOES THE CARBON REDUCTION COMMITMENT START?
A three year introductory phase will begin in April 2010, however actions will be necessary during 2009. Qualification for the scheme will be based on an organisation’s total half hourly electricity usage over the full calendar year of 2008.
WHAT THIS MEANS TO YOUR BUSINESS?
You need to prepare your organisation for the CRC by making an early assessment of your carbon emissions via a Carbon Footprint Appraisal, and then start reducing them. By reducing energy & CO2 you will
• Save operational costs
• Avoid punitive charges
• Have an opportunity to trade your carbon savings into real profit
• Gain marketing differentiation & advantage
Building energy management is the process of monitoring and controlling the operating systems within a building. Though specific components may differ, these operating systems may include heating and air conditioning, ventilation, lighting, power, security, and alarm systems. While building energy management techniques can be applied to a variety of building types, they are generally the most cost-effective when used in large commercial and industrial buildings.
CARBON CREDITS
Carbon credits are a key component of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs).
ONE CARBON CREDIT IS EQUAL TO ONE TON OF CARBON.
Carbon credits encompass two ideas:
• Prevention/reduction of carbon emissions produced by human activities from reaching the atmosphere by capturing and diverting them to secure storage.
• Removal of carbon from the atmosphere by various means and securely storing it.
Carbon trading is an application of an emissions trading approach. Greenhouse gas emissions are capped and then markets are used to allocate the emissions among the group of regulated sources. The idea is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less "carbon intensive" approaches than are used when there is no cost to emitting carbon dioxide and other GHGs into the atmosphere. Since GHG mitigation projects generate credits, this approach can be used to finance carbon reduction schemes between trading partners and around the world.
Carbon Sequestration: Carbon sequestration can be defined as the capture and secure storage of carbon that would otherwise be emitted to or remain in the atmosphere.
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