By Lachlan Fulton
Looking across three environmental areas; Energy, Carbon and Waste, it looks like 2013 is going to be a busy year. In part two of three, I will provide a brief overview of the key changes - this time with Carbon.
Mandatory GHG Emission Reporting
It has been confirmed that all UK
registered companies on the London Stock Exchange will have to report their GHG
emissions for company reporting years ending on or after 1 October 2013. This
means companies are already well into the first reporting period.
The report will need to include
GHG emissions from Scope 1 (direct) and Scope 2 sources (indirect emissions
from purchased electricity, heat or steam) which are within a boundary
consistent with the financial report.
The introduction of this
legislation is expected to affect a total of 1,100 companies. A further 24,000
companies could also affected if the decision is made to expanded the
legislation to all large companies in 2016.
CRC Simplification
Following on from the chancellor’s
Autumn Statement, DECC have published its response to its consultation on the
simplification of the CRC Energy Efficiency Scheme.
From the 1 June 2013:
- The number of fuels on which you must report will be reduced from 29 to 2 – electricity and gas
- The scheme will only regulate gas supply for the purpose of heating generation
- A 2% de minimis exclusion threshold will be applied to gas (for heating) consumption
- The sale window for CRC allowance surrender will be extended from July to the end of October during each compliance year, effective from September 2013 onwards
- The restriction of the circumstances in which Electricity Generating Credits can be claimed
- The Performance League Table will not be published from next year, however the Environment Agency will continue to publicly disclose participants’ aggregated energy use and emissions data
Price allowances will continue at
£12 per tonne of CO2 in 2013-14 and increase to £16/tCO2
in 2014-15. From 2015-16 onwards the price will follow the Retail Price Index.