Carbon Reduction Commitment &
Carbon Trading Councils
Gemma Bradshaw
Policy Analyst
Centre for Local Sustainability
Carbon Reduction Commitment
• All Energy-Use emissions - not just half-hourly electricity
•
•
Indirect - Electricity
Direct – Gas, Oil, Coal etc
• Not Covered
•
•
•
•
EU ETS emissions
CCA emissions
Transport, Households
De-minimis
• Energy use assigned to the Counterparty to the energy
supply contract
•
PFI / outsourcing / companies
•
BUT schools in
Carbon Reduction Commitment
First year of scheme:
2010/11
April
2010
Second year of scheme:
2011/12
April
2011
Jul 2011
Report and
surrender
allowances for
2010/11
Oct
2011
Third year of scheme:
2012/13
April
2012
Jul 2012
Report on and
surrender
allowances for
2011/12
Spot Trading
1st Sale takes place
•Participants pay for both
actual 2010/11 and
forecast 2011/12
allowances
Oct
2012
etc
1st Recycling
payments made
•2010/11 and 2011/12
allowances released to
participants
•All revenue from
April 2011 sale (i.e. 2
years’ worth of
revenue) recycled
back from
Government to
participants
•Government holds 2
years of scheme revenue
•Government holds
£0 of CRC revenue
2nd Sale takes place
•Participants pay for
forecast 2012/13
allowances
2nd Recycling
payments made
•2012/13 allowances
released to participants
• Revenue from April
2012 sale recycled
back from
Government to
participants
•Government holds 1
year of scheme
revenue
•Government holds
£0 of scheme
revenue
Carbon Trading Councils
• Total baseline of carbon emissions 533,385.7
tonnes CO2
• Cap set at 5%, leaving 506,715 tonnes of carbon
allowances in the market
• Distributed at £12 per tonne, overall the market
value was £6,201,050
• Auction introduced a further 10161 allowances,
price fell to £8
• 925 permits have been traded, price of carbon
fluctuates from £11 to £12
Lessons learned
• Energy management – 2 month delay in data.
• Schools – up to 70% of a local authorities
carbon baseline
• Responsibility - PFI, tenant and leaseholder
• CRC reality check - regulation and enforcement,
fines, league tables
Things to think about?
• Which emissions are you responsible for now
and in the future?
• What is your carbon purchase and trading
strategy?
• Who will be making trading decisions?
• What skills are needed?
• Is there a clear role for elected members?
www.lgiu.gov.uk
[email protected]
0207 554 2832
For more information on LGiU Cymru contact
[email protected]