Carbon Reduction Commitment (CRC) Matthew Croucher SMMT 3 May 2009
Contents • What is the CRC? • Are you covered by it? • Timeline of the scheme • Key industry concerns over the scheme • The franchise/dealer issue • SMMT action
Simple scheme to cut CO 2 • For those outside CCA and EU ETS
What is the CRC • Encourage energy efficiency and lower emissions • Cap and trade scheme • Have buy allowances to cover emissions used (at auction) • Annual reporting – performance in league table – public • Revenues recycled based on position in table (+/-50%) • Takes account of growth • Has a 3 year introductory phase • Comes into effect in April 2010
CRC – are you covered? • Covers organisations • Organisation – NOT site/group • Do have half-hourly electricity meters? • Do they consume 6, 000 MWh (>£ 500, 000) • If in scheme, then all energy must then be included • Energy covered by CCA/EU ETS not in scheme • Exemptions for CCAs (if 25% subsidiary in CCA) • VMs to take responsibility for dealers
CRC – timeline
SMMT’s key concerns • Does not appear a simple scheme • Dealers – burden on VMs, but they have little control • Definition of organisations – knowing legal structure • Impact on cash flow a concern • Introductory phase needs to be more ‘lenient’ • Difficult to gauge how much of sector will be covered • Difficult to ascertain how sector will perform relatively • Could impact adversely on electric car demand?
Dealers Change definition of ‘franchise’ ‘Does so exclusively under a trading name provided by the franchisor’
SMMT action • SMMT wrote to Ed Miliband requesting meeting • SMMT meet with DECC on dealer issue • Revised definition of franchise • To respond to consultation – 4 June • CBI to include our franchise definition in their response • To follow up with DECC on dealer issue, and involve BERR • To work with RMIF on dealers energy efficiency • Carbon Trust funded voluntary programme • To undertake another awareness campaign with members
Any questions? For further details mcroucher@smmt. co. uk 020 7344 1640 http: //www. defra. gov. uk/environment/climatechange/ uk/business/crc/index. htm
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