CRC Details Published
The UK government has published more information on the carbon reduction commitment (CRC) – a proposed mandatory emissions trading scheme for large organisations like supermarkets, hotels, water companies, government departments and local authorities.
The scheme is due to begin in 2010, and will apply to around 5,000 large, non-energy intensive organisations that have half-hourly electricity meters and use more than 6,000 kWhr of electricity per year. Roughly speaking if you have a bill over £500k you’ll be hit.
If so you will have to buy allowances from the government to cover all of their emissions – not just electricity. They are expected to cost around £12/tCO2. For the first 3 years there will be no restriction on the number of allowances, then a new Committee on Climate Change will set caps for 5 year phases. Organisations will then have to trade between themselves.
All the more reason to start cutting those carbon emissions back now. You may be able to profit from your tardy peers.