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.
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.
As of January 2009, the required standards for automatic meter reading equipment have not yet been published. However, during summer 2008 the government published draft consultation on the Carbon Reduction Commitment and it is considered that the standards published in that document will not change with regards to Automatic Meter Reading equipment.
In essence, Automatic Meter Reading equipment will need to meet minimum standards in the way that it collates and stores data, including the frequency with which it carries out this process (at least every half an hour). The Automatic Meter Reading system will then need to manipulate and present the data (probably via a software package) so that it can be easily understood and used to reduce energy consumption.
The official standards for Automatic Meter Reading equipment are due to be published in the first quarter of 2009
In calculating the crc emission factors with regards to electricity consumption within organisations and subject to the carbon reduction commitment, a five-year average emissions factor will be applied to all electricity. To this end, the same factor will be used to measure emissions from all organisations regardless of whether or not they purchased their grid electricity supply from a wind power, nuclear, coal powered or any other form of electricity generation scheme. However, if you produce your own on-site renewable electricity and you do not claim renewable obligation certificates, then you will be able to submit this use of electricity as zero emissions.If you claoim ROCs you will have to apply electriicty emissions at grid emission ratings.
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.
All participants in the Carbon Reduction Commitment will be required to produce evidence packs in case of an audit. The evidence pack must include:
Structural Records - with clear definitions for the structure of the organisation. Information on implmentin early action metrics and growth metric across all subsidiaries.
Data Records - to show the annual organisation-wide energy consumption. Estimated bills can be used, but they must be idenitifed in the evience pack. Standard unmetered supplies UMS billing methodology is considered to be 'estimates'. An upward adjustment factor of 10% will be applied to estimated consumption. The evidence pack must also provide evidence of actual readings for at least 6 consecutive months of the year.
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Special event records - to identify unusual activity from, such as acquisitions
The evidence pack must be signed by a Director of the company
Whilst qualification for the Carbon Reduction Commitment determined by electricity use, it aims to capture all non-transport energy consumption. As a result, if you're in the Carbon Reduction Scheme, you will be required to report on electricity, gas, oil, diesel etc.
Core sources in the CRC includes all half hourly metered electricity, profile class 5 to 8 electricity, daily metered gas and non-daily metered gas over 73,200kWh per annum.
90% emissions rule means that of your entire organisaiton's carbon footprint, you will be to be able to show that 90% has been captured by the EUETS, CCA and/or the 'core sources' of the CRC '. If the total comes to less than 90%, you will be required to opt-in to reportin on additional non-core sources to reach the 90% level. The first year assessment of the 90% rule will be made during the period from April 2010 to March 2011 (the frist year of the scheme). This reporting must be must be reported by 31st July 2011.
If you're in the Carbon Reduction Commitment, but you also have liabilities under the Climate Change Agreement and/or European Union Emissions Trading Scheme, then those emission will not be covered by the CRC.