Carbon Reduction Commitment

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Carbon Reduction Commitment Carbon Trading
CouncilsGemma BradshawPolicy Analyst Centre
for Local Sustainability
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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

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Carbon Reduction Commitment
First year of scheme 2010/11
Second year of scheme 2011/12
Third year of scheme 2012/13
Jul 2012 Report on and surrender allowances for
2011/12
Jul 2011 Report and surrender allowances for
2010/11
April 2010
April 2011
Oct 2011
April 2012
Oct 2012
etc
Spot Trading

• 2nd Sale takes place
• Participants pay for forecast 2012/13 allowances
• 2012/13 allowances released to participants
• Government holds 1 year of scheme revenue

• 2nd Recycling payments made
• Revenue from April 2012 sale recycled back from
  Government to participants
• Government holds 0 of scheme revenue

• 1st Sale takes place
• Participants pay for both actual 2010/11 and
  forecast 2011/12 allowances
• 2010/11 and 2011/12 allowances released to
  participants
• Government holds 2 years of scheme revenue

• 1st Recycling payments made
• All revenue from April 2011 sale (i.e. 2 years
  worth of revenue) recycled back from Government
  to participants
• Government holds 0 of CRC revenue

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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

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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

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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?

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www.lgiu.gov.ukgemma.bradshaw_at_lgiu.org.uk0207
554 2832For more information on LGiU Cymru
contact juliet.morris_at_lgiu.org.uk