Aardvark News
Aardvark Carbon Facts - Issue 2
The Carbon Reduction Commitment roll out has begun; organisations with half-hourly meters have had notification from the Environment Agency. The scheme will come into force on 1st April 2010. The threshold for the scheme is using more than 6000MWh of electricity in 2008 through at least one half hourly electricity meter; you may be exempt if you are in a CCA or EUETS scheme.
Did you know?
1. Reducing the Liability
The liability is two fold, firstly reputational liability with regard to competitor position in the league table and secondly in the amount of revenue that will be recycled back to your organisation.
A balance needs to be stuck between this reputation and the costs to improve performance in the first year, when financial returns are likely to be low, and the only metric is on Early Adoption Measures. We calculate that for most organisations every £1 paid in to the scheme will mean a gain or loss of between £0.02 and £0.04.
Managing the liability on a financial basis in subsequent years will be much more important and the returns or losses will be much greater.
For example, a portfolio with 12,000,000 sqft with a carbon output of 134,566 tonnes per annum, reducing on the absolute value by 10%, will pay out £1.6m but receive back £1.9m in recycled revenue.
2. League Table Positioning
Small measures in the early years will improve your performance in the League Table, so understanding what is included in CRC and what is excluded is key in the first year of the scheme. This includes fuel types, frequency of fuel use monitoring and the relationship with subsidiary businesses already with a CCA; as we mentioned in CRC Facts 1.
Aardvark has developed a CRC Liability League Table Repayment Calculator - please contact the Aardvark team for further information (contact details below).
3. Revenue Recycling
At an industry conference in London on 2nd and 3rd June, DECC confirmed the scheme will be revised to ensure revenue raised by the allowances sales are returned to participant organisations within six months, to help with cash flow.
Getting carbon fit and having a strategy in place for you and your tenants will save money.
The Aardvark team have extensive experience of carbon management for CCA, EUETS and through working with energy intensive organisations and property clients over the last 10 years. We are currently tracking 55,000 tonnes of CO2e emissions from 35,532 sources associated with 1,459 property based assets - bringing down liabilities and making commercial reductions.
Our team can quickly work through liabilities and reduction potential of the CRC on your organisation.
If you think we can help or would like our Guidance Note then please contact either Mark Clayton or Phil Cookson on 01984 624989 or email markclayton@aardvarkem.co.uk or philcookson@aardvarkem.co.uk
Tuesday, 23 June 2009