Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

Andrew JonesC.Eng. B.Eng. FIE MCIBSE

Managing DirectorSterling Carbon Management

Coming ready or not!

- The Carbon Reduction Commitment

PART OF THE STERLING POWER GROUP

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

My talk will cover:

- a little about my involvement with CRC (since 2006)

- is it good for business & the bottom line

- the experiences & readiness of companies

- managing challenges & risks

- The Carbon Reduction Commitment

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - and me

June 1996 – March 2008:Head of Energy & Built Environment for FTSE100 Retailer

June 2006: seconded to DEFRA as business advisorWorking within the ‘EPC’ team for Philip Douglas

Early 2006:formed REF - The Retail Energy Forum

April 2008:formed SCM … which now runs REF … and does CRC+ work for some of them

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - and business

2006 Mission Statement:

- “to share best practice to reduce our carbon footprints”

… the Retail Energy Forum

- focus is on Climate Change, on risks … not just on costs!

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - Climate Change … the risks

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

Announcements 15 July by BIS, DECC, DfT

• Low carbon Transition Plan– how the Government will meet the first five-yearly Carbon

Budgets under the Climate Change Act

• Low carbon Industrial Strategy– Government plans to support the UK’s low carbon

technologies and services sector

• Low carbon Transport Strategy– range of possible approaches for low carbon transport,

including technology, alternative fuels, trading and behavioural changes

• Renewable Energy Strategy– how to meet the targets under the Renewable Energy

Directive

15% increase

- Climate Change … the policies

Manage the bottom-line risk!

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - in perspective

Concentrate on the 8 pences

not the half-pences.

Save the lot not just the tax.

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - in perspective … and in focus

CRC

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

• we need to mitigate & adapt to climate change

• we need to make our contribution to GHG reduction

• we need to manage the financial impact

- and business

• business would like to have some control … not just be ‘hit’ by taxes

• the CBI favours cap & trade methods to e.g doubling CCL

• CRC provides - opportunity to trade - incentives for action - gets the attention of the Board … BUT

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

agree disagree unsure

I have all the information I need to be able to participate fully when the scheme is launched next April  4139 20

I can comply with the Government’s requirements with existing staff 

I anticipate using external advice and support 

I think the scheme has a valuable contribution to make to a cleaner environment 

40 

27 33

40 30 

30

53 17 30

I believe the way the scheme has been costed seems fair   13 37 50

I would like to meet with a group of other large energy customers to compare notes

50 20 

30

- are we ready?

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

• Very complex and elaborate scheme.

• Scheme seems unfair to those companies who have already made investment to improve their efficiency & reduce carbon.

• Internal staff can deal with the CRC but we will make selective use of external staff for specific energy efficiency projects. • We have concerns around the split of absolute/relative emission reductions in the reward mechanism, excessive penalties and the treatment of on-site renewable generation.

• Not enough focus on the financial management of the scheme – i.e. getting financial executives involved.

• I think it is important that the Government makes the right moves itself.

• We will not be full participants but I believe that one day the bar will be lowered so that we will have to join.

- are we ready?

“

“

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

Check Qualification

Get ready to Register

Develop Carbon Reduction Plans

Pay Fees

Register

… Keep above the mid-point ‘for ever’?!

Implement Carbon Reduction Plans

Buy Allowances

Report, report, report

Keep going ‘for ever’

- are we ready?

Get ready to Register

Check Qualification

APRIL 2010

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC - registration: be ready!

What has to be done?

1. check if it means YOU.2. if not full reporting .. then information disclosure?

3. get joined-up understanding in your company. 4. get your organisation mapped & contacts identified.5. get your data marshalled and shipshape.6. work out if applicable 90% is met from core sources

.. prepare residual list?7. decide if you want to report on 90% or 100%.

8. manage the impact by implementing CO2 reduction actions.

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

“tacking climate change could create opportunities for a company to increase its value by up to 80% if it is well positioned and proactive.

Conversely it could threaten up to 65% of value if the company is poorly positioned or a laggard”

Carbon Trust and McKinsey 2008

Climate Change - a final thought

Certified to: ISO 9001:2008 ISO 14001:2004 BS OHAS 18001:2007 Member of:

CRC

Andrew JonesC.Eng. B.Eng. FIE MCIBSE

http://www.sterling-power.co.uk/

0121 585 4080

- The Carbon Reduction Commitment

PART OF THE STERLING POWER GROUP