Consultation on implementing the Carbon Reduction Commitment
The Carbon Reduction Commitment (CRC) – formerly known as the Energy Performance Commitment (EPC), is a new mandatory cap-and-trade scheme to reduce energy use emissions from targeted large business and public sector organisations. The CRC will target organisations with an annual electricity consumption from mandatory half hourly meters in excess of 6,000MWh. At current energy prices, this would generally include organisations with annual electricity bills above £500,000.
The CRC will include a wide variety of organisations – among them supermarkets, hotel chains, rail operators, large offices, hospitals, universities, central government departments and large local authorities. Overall CRC is expected to deliver net present value benefit to participants of £755m – with organisations saving money through lower energy bills as a result of improved energy efficiency.
This consultation invites views on how Government, including the Devolved Administrations, should implement the UK Carbon Reduction Commitment (CRC), in order to secure the required emissions reductions.
Key issues for this consultation include:
- The proposed definition of a CRC organisation
- Coverage of specific activities and emissions
- Design of the auction and CRC league table
- Monitoring, reporting, audit and penalties
The closing date for the submission of consultation responses is 9th October 2007. Further information is available from: http://www.defra.gov.uk/corporate/consult/carbon-reduc/index.htm
Source: www.defra.gov.uk (accessed 09/07/07)