Impact of the CRC Energy Efficiency Scheme on trust structures and assets. Are you ready for change?
The CRC Energy Efficiency Scheme (CRC) is the UK’s new carbon emissions trading scheme that began operating in April 2010. It applies to a wide range of non-energy intensive private and public sector organisations and could have an impact on trust assets as well as corporate trustees and beneficiaries.
The CRC is a key element of the Government’s strategy for controlling carbon dioxide (CO2) emissions and dealing with climate change. It is a mandatory scheme, placing legal obligations on qualifying organisations to disclose information and, for larger energy users, to report on, and purchase allowances for, energy used and emissions made. Organisations that consume more than 6000MWh of electricity or more from half-hourly metered sources during qualification years must participate fully. The qualification year for the introductory phase of the CRC was the calendar year 2008 so qualification has already been determined.
From 1 April 2010, organisations that have met the full qualification criteria for the introductory phase will have to register with the scheme administrators (in England and Wales this is the Environment Agency) and monitor all of their energy use (electricity, gas and fuel) in anticipation of buying allowances in April 2011 to cover the CO2 emissions from their estimated energy use from April 2011 to March 2012.
Lawyers Alistair Watson, Martin Yells
