The Who, What, When, Why and How of UK Carbon Reporting & CRC Scheme

There are two carbon management schemes - The UK Government have closed the public consultation period to simplify the CRC Energy Efficiency Scheme and have recently opened the consultation period for Mandatory Carbon Reporting for the top 1,100 – 1,800 or so FTSE quoted companies.  The CRC Energy Efficiency Scheme is in its second year with teeth.  The previous years to some were considered the practice rounds.  The first companies were fined for non-compliance in their 2010/11 submission – sharpening up the naysayers!

You probably know if you have been affected by CRC (formally Carbon Reduction Commitment) Energy Efficiency Scheme.  However, you may be wondering how you may be affected by Mandatory Carbon Reporting.

CRC Energy Efficiency Scheme

Who: Organizations whose total half-hourly electricity consumption is over 6,000 megawatt-hours (MWh)

What: Reporting of material Scope 1 (direct) and Scope 2 (indirect) CO2e emissions in the UK:

• Gross emissions
• Intensity ratio (emissions per relevant unit of measure)
• Across the 6 Kyoto protocol greenhouse gases

When: Began 2011/12 – Companies fined for non-compliance.  In 2012/13 companies will be taxed on their carbon emissions

Why: UK commitment to cut emissions to 50% of 1990 by 2025

How: Use government guidance or another recognised standard; Carbon data does need to be verified/audited

Mandatory UK Carbon Reporting

Who: All UK companies in the London Stock Exchange (between 1,100 – 1,800 companies)

What: Reporting of material Scope 1 (direct) and Scope 2 (indirect) CO2e emissions across global boundaries

• Gross emissions
• Intensity ratio (emissions per relevant unit of measure)
• Across the 6 Kyoto protocol greenhouse gases

When: Beginning April 6, 2013 for the UK’s 2013 financial year (for emissions April 2013 – April 2014)

Why: UK's commitment to cut emissions to 50% of 1990 by 2025

How: Use government guidance or another recognised standard.  Carbon data will need to be verified/audited consistent with other data in directors’ reports/annual accounts.

The view of many commentators has been mixed. “Green groups have been highly critical of the draft text, arguing that it makes few firm commitments and [Mandatory UK Carbon Reporting] lacks the ambition necessary to tackle the world's environmental challenges”, Says BusinessGreen.

One thing is for sure: the Carbon Accountants will have a feast on this.  Perhaps building on their existing client base, and then promoting their carbon management solutions to a whole new audience.  Inevitably there will be plenty of scaremongering and “Black Art Wizardry”.

If you need advice or help to wade through the "Black Art Wizardry" of CRC Energy Efficiency or Mandatory UK Carbon Reporting, request your consultation. 

Did you enjoy this post? The author of this article is Charles Hansard. Learn more about him here.