Presentation by Philip Douglas, head of branch, CRC - at the CBI Climate Change Summit, Tuesday 2 December 2008

1. The Carbon Reduction Commitment (CRC) CBI Climate Change Summit conference 2 December 2008 Dr Philip Douglas Head of Branch, CRC

4. Policy development

8. CRC consultation responses

9. Some key practicalities

11. 2008 2009 2010 Calendar year 2008: Assess HH electricity use for all organisations with settled half-hourly metering systems 1 Apr 2010: Scheme Starts April – Sept 2010: Registration All qualifying organisations disclose total half hourly electricity consumption Spring 2009: Env Agency awareness raising The scheme will begin in April 2010 2011 Year one 2012 Year two

12. Parent Company Subsidiaries with emissions in CCAs Subsidiaries In this company structure, subsidiaries M & N have emissions covered by CCAs. These CCAs cover more than 25% of the subsidiaries’ total emissions, therefore they are exempt from CRC A X Y Z M N Emission Coverage

16. Context

17. Growing international interest in CRC USA Brazil Japan South Korea China Australia New Zealand Europe

18. “ Diminishing returns in the EU ETS industries... In commerce there is much more scope to make progress” CBI, November 2005 Source: Ecofys: ENUSIM abatement curves, BRE buildings measures abatement curves Absolute cost effective carbon abatement opportunity to 2020 3.2 0.1 0.5 1.8 0.8 1.1 0.5 MtC (% of total emissions in brackets) ; NPV positive at 15% discount rate 3.3 (13%) 2.3 (18%) 1.6 (15%) 0.8 (15%) 4.5 (20%) 4.3 (33%) 2.6 (25%) 1.3 (23%) TOTALS MANUFACTURING BUILDINGS TOTAL 4.1 (12%) 3.8 (22%) 7.9 (15%) Technical potential TOTAL 12.7 (25%)