Table of Contents

  1. Executive Summary (8)
  2. Introduction – Policy Context, Background and Rationale (0)
  3. 1.1 Carbon Reduction Commitment (CRC) – An introduction (0)
  4. 1.2 Practicalities of the scheme (0)
  5. 1.2.1 Scheme Administrators (0)
  6. 1.2.2 Scheme Phases (0)
  7. 1.2.3 Compliance activities (0)
  8. 1.3 Why CRC? (0)
  9. 1.4 Where CRC fits in the Climate Change policy map (0)
  10. 1.5 How CRC has been designed from a Better Regulation perspective (0)
  11. 2 Determining the CRC Participant (0)
  12. 2.1 Overview (0)
  13. 2.2 Treatment of Groups – ‘Parents and Subsidiaries’ (0)
  14. 2.2.1 Date to determine Group structure (0)
  15. 2.3 Principal Subsidiaries (0)
  16. 2.3.1 Purchase or Sale of a Participant or Principal Subsidiary – Transferring Scheme Obligations (Designated Changes) (0)
  17. 2.3.1.1 Transfers involving a participant and a non-participant (0)
  18. 2.3.1.2 Transfers between participants (0)
  19. 2.3.1.3 Timing of Designated Changes (0)
  20. 2.4 Treatment of business groups (0)
  21. 2.4.1 Treatment of franchise agreements and other vertical distribution agreements (0)
  22. 2.4.1.1 Overview (0)
  23. 2.4.2 Overseas Ownership (0)
  24. 2.5 Joint Ventures and PFI (0)
  25. 2.6 Definition of Public Sector Organisations (0)
  26. 2.6.1 Central Government departments, Executive Agencies and Non-Departmental Public Bodies (0)
  27. 2.6.2 Collegiate universities (0)
  28. 2.6.3 Schools and Local Authorities (0)
  29. 2.6.4 NHS (0)
  30. 2.6.5 Police Authorities (0)
  31. 2.6.6 Fire Authorities (0)
  32. 2.6.7 Application to the Crown (0)
  33. 2.6.8 Public sector organisational change (0)
  34. 2.7 Treatment of Landlords and Tenants (0)
  35. 2.7.1 Overview (0)
  36. 2.7.2 Emissions accounting within CRC (between Landlords and Tenants) (0)
  37. 2.8 Domestic Households (0)
  38. 3 Qualification (0)
  39. 3.1 The qualification criteria (3)
  40. 3.2 Disclosure of Half Hourly Metered electricity use (0)
  41. 3.3 Non-participant obligation (1)
  42. 3.4 Registration (0)
  43. 4 Emissions Coverage (0)
  44. 4.1 Overview (0)
  45. 4.2 Definition of energy consumption (0)
  46. 4.3 Assigning responsibility for energy consumption (1)
  47. 4.4 Activities covered by the scheme (0)
  48. 4.5 Activities excluded from the scheme (0)
  49. 4.5.1 Transport (0)
  50. 4.5.2 EU ETS emissions (0)
  51. 4.5.3 CCA emissions (0)
  52. 4.5.4 Onward transmission (0)
  53. 4.6 Calculating a Participant’s CRC emissions coverage (0)
  54. 4.6.1 Calculation of the organisation ‘footprint’ (0)
  55. 4.6.2 Calculation of the Applicable Percentage – the “90% rule” (0)
  56. 4.7 Legal definitions of core consumption (0)
  57. 4.7.1 Core electricity sources (0)
  58. 4.7.1.1 Half-hourly settled meters (0)
  59. 4.7.1.2 Dynamic pseudo settled half hourly metering (0)
  60. 4.7.1.3 Half hourly Automatic Meter Reading (AMR) meters (0)
  61. 4.7.1.4 Profile class 5 – 8 meters (0)
  62. 4.7.2 Core gas sources (0)
  63. 4.7.2.1 Daily read gas meters (0)
  64. 4.7.2.2 Gas Automatic Meter Reading (AMR) meters (0)
  65. 4.7.2.3 Large gas supply points (0)
  66. 4.8 Inclusion of school energy use (0)
  67. 5 Participant Exemptions (0)
  68. 5.1 Transport Exemption (0)
  69. 5.2 CCA Exemptions (0)
  70. 5.2.1 Group member exemption – “the 25% rule” (0)
  71. 5.2.2 CCA Residual Group Exemption (0)
  72. 5.2.3 CCA exemptions – duration (0)
  73. 6 Obtaining Allowances (0)
  74. 6.1 Overview (0)
  75. 6.2 The Introductory Phase (0)
  76. 6.3 The Capped Phases (0)
  77. 6.3.1 Sale and Auction Restrictions (0)
  78. 6.4 Banking Allowances (0)
  79. 6.5 Obtaining Additional Allowances (0)
  80. 6.5.1 Secondary Market (0)
  81. 6.5.2 Safety Valve (0)
  82. 6.5.2.1 Safety Valve Process (0)
  83. 7 Revenue Recycling (0)
  84. 7.1 Overview (0)
  85. 7.1.1 Minimising cash flow implications for participants (0)
  86. 8 The Performance League Table (0)
  87. 8.1 Overview (0)
  88. 8.2 Objectives for the design of the Performance League Table (0)
  89. 8.3 The league table metrics (0)
  90. 8.3.1 Absolute metric (0)
  91. 8.3.2 Early action metric (0)
  92. 8.3.3 Growth metric (0)
  93. 8.4 Formulating the overall CRC Performance League Table (0)
  94. 8.4.1 Weighting the metrics (0)
  95. 8.4.2 Publication of the Performance League Table (0)
  96. 8.5 Using Historic Averages to assess performance (0)
  97. 8.5.1 Updating historic average emissions baselines (0)
  98. 8.5.2 Updating emissions baselines for transfers between CCAs and CRC (0)
  99. 8.5.3 Updating emissions baselines to reflect the purchase or sale of a Principal Subsidiary or entire CRC participant (Designated Changes) (0)
  100. 8.5.4 Updating emissions baselines for transfers between EU ETS and CRC (0)
  101. 8.5.5 Continuity between phases (0)
  102. 8.6 Additional disclosure of information on carbon management (0)
  103. 8.6.1 Principal Subsidiaries (0)
  104. 8.6.2 Tick box Questions (0)
  105. 8.7 Bonuses and penalties (0)
  106. 9 Compliance, Reporting and Record Keeping (0)
  107. 9.1 Participant obligations (0)
  108. 9.2 Reporting obligations (0)
  109. 9.2.1 Footprint Report (0)
  110. 9.2.2 Annual Report (0)
  111. 9.2.3 General information (0)
  112. 9.2.4 Specific information (0)
  113. 9.3 Measuring energy use (0)
  114. 9.3.1 Emissions factors (0)
  115. 9.3.2 Application of 10% emissions uplift (0)
  116. 9.3.3 Reporting treatment of “Green Tariff” electricity (0)
  117. 9.4 Treatment of electricity generation in CRC (0)
  118. 9.4.1 Overview (0)
  119. 9.4.2 EU ETS, nuclear, large hydro and pumped storage (0)
  120. 9.4.3 Combined Heat and Power (0)
  121. 9.4.4 Renewables (0)
  122. 9.4.5 Energy from Waste (0)
  123. 9.5 Record keeping (0)
  124. 9.6 Evidence pack (0)
  125. 9.6.1 Information to be included in the evidence pack (0)
  126. 9.7 Statement of Electricity and Gas Consumption from Energy Suppliers (0)
  127. 9.7.1 Qualification information (0)
  128. 9.7.2 Supplier statement to participants (0)
  129. 9.8 The Registry (0)
  130. 10 Audit (0)
  131. 10.1 The roles of the Administrators (0)
  132. 10.2 Audit (0)
  133. 11 Enforcement (0)
  134. 11.1 Overview (0)
  135. 11.2 The Civil Penalties (0)
  136. 11.2.1 Failure to register (0)
  137. 11.2.2 Failure to Disclose Information (0)
  138. 11.2.3 Failure to provide a Footprint Report (0)
  139. 11.2.4 Failure to provide an Annual Report (0)
  140. 11.2.5 Incorrect Reporting (0)
  141. 11.2.6 Failure to comply with the performance commitment (0)
  142. 11.2.7 Failure to keep adequate records (0)
  143. 11.2.8 Failure to comply with civil penalties (0)
  144. 11.3 Supplier’s Obligations (0)
  145. 11.3.1 Failure by a supplier to provide information on qualification (0)
  146. 11.3.2 Failure by suppliers to provide statements to customers (0)
  147. 11.4 Appeals Process (0)
  148. 11.5 Criminal Offences (0)
  149. 11.6 Power of inspection (0)
  150. 12 Fees and Charges (0)
  151. 12.1 Overview (0)
  152. 12.2 Proposed areas for charging (0)
  153. 12.2.1 Subsistence charge (0)
  154. 12.2.2 Auditing (0)
  155. Annex 1: Examples of Designated Changes (0)
  156. Annex 2: Landlord and tenant energy efficiency partnerships: Potential impact of CRC and role of CRC good practice guidance (0)
  157. Annex 3 – An Illustrative Example of the Recycling Payment in the Third Year of the Scheme (0)
  158. List of Questions (0)
  159. Glossary of terms used in this consultation document (0)

UPDATE 07/10/09: The government has written a reply to this consultation, including the 250+ direct responses. The result changes the Carbon Reduction Commitment in some significant ways. Details can be found here.

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This consultation was launched on 12 March 2009 and closes at 17:00 on Thursday 04 June 2009.

This is the third consultation on the development of the Carbon Reduction Commitment (CRC) scheme.

CRC is scheduled to come into effect in April 2010. CRC is a cap and trade scheme which seeks to reduce carbon dioxide emissions from large non-energy intensive organisations in both the public and the private sector. It is designed to create a shift in awareness, behaviour and infrastructure. The scheme will involve approximately 5,000 organisations and will deliver at least 4Mt CO2 savings by 2020 through improvements in energy efficiency.

By driving energy efficiency, the CRC will deliver emissions reductions cost-effectively, saving participants money, and enabling sustainable growth. This will yield a benefit to participants of £1billion by 2020.Participants will also be rewarded for their improvements in energy efficiency by receiving a revenue recycling payment. Performance in the scheme will also be made public, adding a reputational incentive for participating organisations.

Further information on the CRC policy and the development of the scheme is available on the Defra: Carbon Reduction Commitment web page.

Republished from the Department of Energy and Climate Change