The UK Emissions Trading Scheme
The UK emissions trading scheme was the world's first economy-wide greenhouse gas emissions trading scheme. The scheme was launched in March 2002, and ended in December 2006, with final reconciliation in March 2007.
…It has been replaced by the European Emissions Trading Scheme (EU ETS).
The European Emissions Trading Scheme
The EU Emissions Trading Scheme (EU ETS) is the main policy being introduced EU-wide to tackle emissions of carbon dioxide and other greenhouse gases, and combat the threat of climate change.
The EU ETS commenced on 1 January 2005. The first phase ran from 2005 to 2007 and the second phase is running from 2008 to 2012 to coincide with the first Kyoto Commitment Period. Further five-year periods are expected subsequently.
Carbon reduction commitment
On the 23 May 2007 the government announced as part of the Energy White Paper, that it has decided to take forward a Carbon Reduction Commitment .
The Carbon Reduction Commitment (CRC) is a new scheme, which will apply mandatory emissions trading to cut carbon emissions from large commercial and public sector organisations (including supermarkets, hotel chains, government departments, large local authority buildings) by 1.1 MtC / year by 2020.
An organisation will be captured by the CRC if its total half-hourly metered (HHM) electricity use is greater than 6,000 megawatt-hours (MWh) between 1 January 2008 and 31 December 2008. This corresponds to annual electricity bills of approximately £500,000. Once an organisation is in, it will be required to account for all its energy use not just half hourly metered electricity.
However, to minimise policy overlap, an organisation’s emissions covered by a CCA or EU ETS will not be required to be reported in this scheme. In addition, CRC subsidiaries with more than 25% of their current emissions covered by a CCA will also be exempt from the scheme.
For more on the Carbon Reduction Commitment see EEF’s Environment Guide.
Enhanced Capital Allowances
£100M from the levy will be made available to fund 100% first year capital allowances on investment in listed energy efficient technologies in three broad categories: energy technology list, water technology list and low CO2 emitting vehicles. Details of the specific technologies that currently appear on the Energy Technology List can be found here.
Eco-Labelling
EU Energy Label - Council Directive 92/75/EEC
The EU Energy Label was established with EC Directive 92/75/EEC and is a compulsory notice that is applied to all white goods and home appliances sold within the EU. It allows consumers to clearly see the efficiency and energy consumption of a product. It is implemented in UK legislation by a series of product specific regulations.
The European Community Energy Label must be displayed on all new household products of the following types displayed for sale, hire, hire-purchase or displayed to end-users even where these are sold for non-household purposes:
- Refrigerators, freezers and fridge-freezer combinations;
- Washing machines, driers and their combinations;
- Dishwashers;
- Water heaters and hot water storage appliances;
- Lighting sources; and
- Ovens.
However, there is no obligation to label models of appliances of which production has stopped before this Directive came into force, or second hand appliances.
The system used by the EU Energy Label runs from A to G and primarily shows energy efficiency. Other details shown by the scheme including various performance related ratings (also scaled A to G).
The Climate Change Bill
This Bill puts into statute the UK's targets to reduce carbon dioxide emissions through domestic and international action by at least 60 per cent by 2050 and at least 26 per cent by 2020, against a 1990 baseline.
The Bill will require the Government, on a regular basis, to assess the risks to the UK from the impact of Climate Change and report to Parliament
It is expected to receive Royal Assent during Autumn 2008.
Guidance
The government set up the Carbon Trust as an independent body responsible for reducing carbon emissions and helping business increase energy efficiency and reduce their contribution to climate change.