90 Percent Emissions Rule

The Carbon Reduction Commitment's 90 percent emissions rule, otherwse known as the 'flexible de minimis' rule, requires all particpants to account for at least 90% of their total carbon footprint emissions. The 90% rule aims to focus attention on the largest, and most cost effective, opportunities to reduce carbon emissions.

The 90% emissions rule can include all energy reported through the Climate Change Agreement, European Union Emissions Trading Scheme, as well as all 'Core Sources' of non-transport energy consumption.

Where any organisation has identified all of the above, but is still unable to reach the 90% minimum, it will be required to identify enough 'Non-core' non-transport sources of energy to reach the required 90% threshold.

During the initial energy assessment for the Carbon Reduction Commiment, particpants must attempt to report 100% of emissions. Beyond this period, opportunities exist for organisations to opt-in the non-core sources of energy consumption if they wish to do so.

By opting-in, organisations have the opportunity to include existing energy consumption that may have considerable potential to be reduced in the future. Naturally, this would increase an organisations total carbon liability, but it may still be a worthwhile option if the reductions are made in the future.

Core and Non-Core Sources

Within the carbon reduction commitment, energy consumption is divided into 'core sources' and 'non-core sources'.

Core sources will typically include all electricity and non-transport fuel those provided as a constant supply and invoiced on a regular or monthly basis. It will be mandatory for all organisations to report their core sources of energy,

Non-core sources will generally include more ad hoc energy supply, including some bulk fuels. Organisations will only be required to record their non-core sources if they are unable to identify a minimum of 90% total carbon emissions from the core sources.