CRC
- The Carbon Reduction Commitment
Coming ready or not!
Andrew Jones
C.Eng. B.Eng. FIE MCIBSE
Managing Director
Sterling Carbon Management
PART OF THE STERLING POWER GROUP
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- The Carbon Reduction Commitment
My talk will cover:
- a little about my involvement with CRC (since 2006)
- is it good for business & the bottom line
- the experiences & readiness of companies
- managing challenges & risks
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- and me
June 1996 – March 2008:
Head of Energy & Built Environment for FTSE100 Retailer
June 2006:
seconded to DEFRA as business advisor
Working within the ‘EPC’ team for Philip Douglas
Early 2006:
formed REF - The Retail Energy Forum
April 2008:
formed SCM … which now runs REF
… and does CRC+ work for some of them
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- and business
… the Retail Energy Forum
2006 Mission Statement:
- “to share best practice to reduce our carbon footprints”
- focus is on Climate Change, on risks … not just on costs!
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- Climate Change … the risks
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- Climate Change … the policies
Announcements 15 July by BIS, DECC, DfT
• Low carbon Transition Plan
–
15% increase
how the Government will meet the first five-yearly Carbon
Budgets under the Climate Change Act
• Low carbon Industrial Strategy
–
Government plans to support the UK’s low carbon
technologies and services sector
• Low carbon Transport Strategy
–
range of possible approaches for low carbon transport,
including technology, alternative fuels, trading and
behavioural changes
• Renewable Energy Strategy
–
how to meet the targets under the Renewable Energy
Directive
Manage the bottom-line risk!
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- in perspective
Concentrate on
the 8 pences
not
the half-pences.
Save the lot
not just
the tax.
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- in perspective … and in focus
CRC
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- and business
• we need to mitigate & adapt to climate change
• we need to make our contribution to GHG reduction
• we need to manage the financial impact
• business would like to have some control … not just be ‘hit’ by taxes
• the CBI favours cap & trade methods to e.g doubling CCL
• CRC provides
- opportunity to trade
- incentives for action
- gets the attention of the Board
… BUT
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- are we ready?
agree
disagree
unsure
I have all the information I need to be able to participate fully
when the scheme is launched next April
39
41
20
I can comply with the Government’s requirements with existing
staff
40
27
33
40
30
30
53
17
30
13
37
50
50
20
30
I anticipate using external advice and support
I think the scheme has a valuable contribution to make to a
cleaner environment
I believe the way the scheme has been costed seems fair
I would like to meet with a group of other large energy customers
to compare notes
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
“
- are we ready?
• Very complex and elaborate scheme.
• Scheme seems unfair to those companies who have already made
investment to improve their efficiency & reduce carbon.
• Internal staff can deal with the CRC but we will make selective use of
external staff for specific energy efficiency projects.
• We have concerns around the split of absolute/relative emission reductions
in the reward mechanism, excessive penalties and the treatment of on-site
renewable generation.
• Not enough focus on the financial management of the scheme – i.e. getting
financial executives involved.
• I think it is important that the Government makes the right moves itself.
• We will not be full participants but I believe that one day the bar will be
lowered so that we will have to join.
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- are we ready?
Check Qualification
Get
Get ready
ready to
to Register
Register
APRIL 2010
Develop Carbon Reduction Plans
Pay Fees
Register
Implement Carbon Reduction Plans
Buy Allowances
Report, report, report
Keep going ‘for ever’
Certified to:
ISO 9001:2008
… Keep above the mid-point ‘for ever’?!
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- registration: be ready!
What has to be done?
1.
2.
check if it means YOU.
if not full reporting .. then information disclosure?
3.
4.
5.
6.
7.
get joined-up understanding in your company.
get your organisation mapped & contacts identified.
get your data marshalled and shipshape.
work out if applicable 90% is met from core sources
.. prepare residual list?
decide if you want to report on 90% or 100%.
8.
manage the impact by implementing CO2 reduction actions.
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
Climate
Change - a final thought
“tacking climate change could create
opportunities for a company to increase its
value by up to 80% if it is well positioned
and proactive.
Conversely it could threaten up to 65% of
value if the company is poorly positioned
or a laggard”
Carbon Trust and McKinsey 2008
Certified to:
ISO 9001:2008
ISO 14001:2004
BS OHAS 18001:2007
Member of:
CRC
- The Carbon Reduction Commitment
Andrew Jones
C.Eng. B.Eng. FIE MCIBSE
http://www.sterling-power.co.uk/
PART OF THE STERLING POWER GROUP
Certified to:
ISO 9001:2008
0121 585 4080
ISO 14001:2004
BS OHAS 18001:2007
Member of: