MIDAS is raising awareness of how a new mandatory UK legislation coming into force this year to help reduce carbon emissions will affect companies in Manchester City Region.
The Carbon Reduction Commitment (CRC) is a mandatory non-profit cap-and-trade scheme that will impact companies in the non-energy intensive sector, which have annual expenditure of £1 million on electricity.
The UK-wide scheme, developed in partnership by the Department of Energy and Climate Change, the Scottish Government, the Welsh Assembly Government and the Department of Environment Northern Ireland, requires self-registration. Companies are urged to sign up sooner rather than later as failure to do so on time will result in heavy fines.
Launching in April 2010, the CRC obliges organisations to purchase allowances equivalent to their emissions each year. The overall emissions reduction target is achieved by means of a cap on the total number of allowances available, with individual participants determining the most cost-effective means to reduce their emissions. At the end of the year, performance of all companies within the scheme will be published and made publicly available in a “name and shame” league table. Overall it is estimated the scheme will achieve dramatic emissions reductions by 2020 and save around £1 billion.
Across the UK, the scheme may affect around 5,000 organisations, and MIDAS is able to offer advice and assistance to all those who fulfil the criteria in the Manchester City Region.
Companies interested in attending a seminar on the CRC legislation and learning how it may impact their company should contact Nisha Sharma, Business Development Manager (Energy and Environment).
- Government published its final consultation and guidance in March 2009
- 5,000 companies to be affected in the UK
- Qualification of the scheme is based on electricity bills of 6,000MWh/pa (approximately £1million per annum)
- It is the combined electricity usage of the group to which a company belongs that will be used to ascertain qualification – not that of the single entity
- It is a self-registration scheme with heavy fines for companies failing to register or registering late
- Cash flow and reputational impact as annual league tables are published