In developing a Carbon Reduction Commitment action plan, the first thing that any organisation will need to do is to understand their liability.
The 'Organisation'
The full organisational structure of any company will need to be ascertained to identify whether or not it will be required to enter into the carbon reduction commitment scheme.
Total Half Hourly Electricity Consumption
Organisations will need to assess all the consumption from their half hourly electricity meters during 2008 to calculate whether or not they exceed the 6,000 MWh threshold.
Exemptions
Further investigation will be needed to look at areas of the organisation may be exempt under CCA, EUETS, or 'Significant Subsidiaries' rules, to better identify the organisation's total liability to the Carbon Reduction Commitment scheme.
90% Emissions Rule
The next stage of the process will be to identify a minimum of 90% of the organisation's total emissions covered by any combination of Climate Change Agreements, EU European Trading Scheme and core sources of non-transport energy consumption. Where all of the above do not account for the minimum threshold, non-core sources of energy will need to be accounted for and submitted to reach the required is 90% mark.
Identify Opportunities
organisations will need to investigate had opportunities to reduce energy consumption. A marginal abatement cost curve can help in this process by providing a tool to communicate investment required to reach compliance with the carbon reduction commitment and demonstrate that priorities have been investigated.
Targets
In developing the action plan it is important to identify what you aim to achieve. To this end, you may be simply looking for compliance with the law. However, you may be looking for the potential financial rewards that can be gained from the bonus payments. Additionally, you may be especially interested in the brand and marketing potential of being a leading organisation in the Carbon Reduction Commitment league table.