Environmental Markets
scrap-ex will list Carbon Reduction Commitments (CRCs) as a product on the Trading Platform from mid 2010.
What is a Carbon Reduction Commitment?
The Carbon Reduction Commitment (CRC) is a mandatory system that will affect all organisations that receive electricity through Half Hourly Meters (HHMs).
It is designed to reduce carbon emissions in the UK by rewarding companies that perform well and penalising those that don't.
Who will this apply to?
Any organisation that consumes more that 6,000 MWh per annum (a bill of around £500k) will be required to participate fully.
In September 2009 the Environment Agency sent those organisations qualifying packs detailing requirements and obligations under the scheme.
How will the market work?
It will operate as a 'cap and trade' mechanism, providing a financial incentive to reduce energy use by putting a price on carbon emissions from energy use
The scheme is designed to tackle CO2 emissions not already covered by Climate Change Agreements and the EU Emissions Trading Scheme.
Full participants will be required to buy allowances from the government at the beginning of each compliance year after 2010
The first such year is April 2011 to March 2012. The allowances will cost a fixed £12/tonne of CO2. Organisations may then trade allowances later in the year if they have a surplus or shortfall.
If this
applies to your company and you are interested in trading CRCs
through the scrap-ex platform please email us on info@scrap-ex.com
or call on 0844 56 76 830
The emergence and growth of a market for carbon and emissions trading schemes is perhaps the most visible result of worldwide efforts to mitigate climate change. Carbon markets can be divided into compliance markets and voluntary markets. These markets are increasingly supported by a growing range of products and instruments, reflecting the emergence of carbon as a mainstream commodity.
