UK Carbon Reduction Commitment

As part of the UK Climate Change Strategy and the Climate Change Act 2008, the UK government is introducing a carbon budget system in April 2010 called the Carbon Reduction Commitment (CRC). The CRC aims to widen current emission trading schemes to cover non-energy intensive businesses and public sector organisations with high electricity consumption.

It is the objective of the CRC to deliver nationwide emission reductions including the government target of 80% reduction by 2050 (against a 1990 baseline). The CRC will serve as a financial incentive to reduce emissions by pricing carbon, and emissions reduction targets will be achieved by putting a cap on the allowances available. Companies will be required to submit annual footprint reports, to be used as a basis for forecasting emissions. In addition, performance will be benchmarked in an annual performance league table.

Although the regulation will not come into force until April 2010, SGS recommends that organisations check their qualification status under the scheme and prepare for the registration process. To qualify, organisations should check their electricity consumption from half-hourly metering in UK sites in 2008; and be ready to register in April 2010.

SGS Sustainability Services, through its Carbon Footprint Programme, can assist with the compliance process, through training, determining relevant emissions under the scheme, and developing a carbon reduction strategy, to ensure your organisation can benefit from the CRC.

The CRC will involve self-certification of emissions, but will be backed up by desk auditing of 20% of participants every year. As a global leader in GHG emissions verification, SGS Climate Change Services will be able to assist you through emissions verification, to prepare for auditing and to boost credibility.