The Government announced new eco incentives to reduce energy & save money
today. The Carbon
Reduction Commitment Energy Efficiency Scheme aims to cut fuel
bills by £1 billion and to
reduce carbon emissions by more than 4
MtCO2 each year by 2020.
Initially, the scheme will apply solely to organisations whose annual half hourly metered electricity use is over 6,000
Megawatt hours (MWh) – typically those that spend £0.5 million a year on
But all individuals and organisations who wish to cut their energy bills –
regardless of their size or whether they are participating in the scheme – can
find assistance through the Carbon
Trust, which provides practical advice on how to improve energy efficiency
and develop low carbon products and services.
The three year Introductory Phase of the scheme starts on 1st April
Participating organisations will have to register with the UK Environment Agency who will administer the scheme. The
registration window will begin in April and last until the 30 September 2010.
During this first year (2010/11), organisations will only have to report
emissions, and an unlimited number of carbon gas emission
allowances will be available at a fixed price of £12/tCO2. Participants in the scheme will also receive a
revenue recycling payment each year.
From the second year (2011/12), scheme participants will have to purchase
annual carbon gas emission allowances, monitor energy use,
report emissions and also surrender allowances. But
organisations that take early action to improve energy efficiency,
e.g., by using onsite renewable energy like wind turbines or solar panels, will
receive extra weighting, and increased carbon savings from such measures will be published.
In the Second Phase of the scheme, beginning in 2013, the Government
will cap the number of carbon gas emission allowances available each
year and all allowances will be auctioned. The cap will be set in 2010
after the Government takes advice from the Committee on Climate Change.
About the Carbon Reduction Commitment
The Carbon Reduction Commitment is a UK environmental law policy
scheme. The new eco incentives to reduce energy & save money have been
developed by the Department of
Energy and Climate Change, in partnership with the devolved Scottish Government, the Welsh Assembly Government and the Department of the
Environment Northern Ireland.
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