Tuesday, 11 January 2011

CRC Energy Efficiency Scheme

We are now well on the road to the end of the very first year of the CRC.

We've had the scare stories, the organisations failing to register, or less
organisations registering than were very first thought. Early estimates from
the Government suggested 5000 plus organisations would be full participants
with a further 20,000 as data disclosures. We've had just over 3,700 full
participants register, what does this tell us?

For me, based on my research, it tells me that a lot of organisations didn't
comprehend what they were required to do. For instance, a vehicle
dealership, an example Defra employed in their literature, if that
dealership was a single franchise, SEAT for instance, then if a single SEAT
dealer anywhere else inside the UK had a half hour meter then ALL SEAT
dealerships and SEAT firms were in under the banner of SEAT, who had the
responsibility of collating this data. That's nice and simple, until you
then take a look at if that same dealership had say SEAT and VW at the same
premises, they're out? Add to that the ability to register independently so
the SEAT brand did not have to account for every thing that traded under its
name . . . confused . . . therein lies the difficulty!

At least the Con/Dem co-alition government has pushed back the full
implementation of phase 1 of the CRC by 12 months, the same for Phase
2.They're also looking at making the scheme simpler, firstly by making it a
Tax, no payments from the pot for those that reduce emissions the most,
Excellent or Poor?

For me it's a bit of great and bad, organisations no longer being rewarded
for reducing emissions will need to discover some other motivation to reduce
emissions! The great side is that it's giving these organisation more time
to get to grips with the scheme, even so, as experience has shown, a lot of
organisations left it to the last minute before registering for the CRC,
will they do the same once more?

Initially Phase 1 reporting is primarily about Scope 1 & 2 emissions, Scope
1 being based on energy you produce, for instance if you had a wind turbine
and selling electricity back to the grid, Scope 2 is for energy you

Nonetheless Phase 2 of the CRC is interesting, as it suggests that Scope
three emissions will be included in a company's declaration, a great way of
introducing mandatory emissions reporting for all via the back door. Scope
three covers every thing from Travel to Suppliers.


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