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Matthew Croucher SMMT 3 May 2009

The Carbon Reduction Commitment (CRC) is a vital initiative aimed at reducing carbon emissions and promoting energy efficiency among organizations. This overview addresses essential aspects of the scheme, including coverage criteria, a timeline for implementation starting in April 2010, and key concerns raised by the automotive industry, particularly regarding franchise definitions and dealer responsibilities. It highlights SMMT's actions to engage with stakeholders and calls for clarity to ease the burden on dealers. For more information, contact Matthew Croucher at mcroucher@smmt.co.uk.

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Matthew Croucher SMMT 3 May 2009

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  1. Carbon Reduction Commitment (CRC) Matthew Croucher SMMT 3 May 2009

  2. Contents • What is the CRC? • Are you covered by it? • Timeline of the scheme • Key industry concerns over the scheme • The franchise/dealer issue • SMMT action

  3. Simple scheme to cut CO2 • For those outside CCA and EU ETS

  4. What is the CRC • Encourage energy efficiency and lower emissions • Cap and trade scheme • Have buy allowances to cover emissions used (at auction) • Annual reporting – performance in league table – public • Revenuesrecycled based on position in table (+/-50%) • Takes account of growth • Has a 3 year introductory phase • Comes into effect in April 2010

  5. CRC – are you covered? • Covers organisations • Organisation – NOT site/group • Do have half-hourly electricity meters? • Do they consume 6,000MWh (>£500,000) • If in scheme, then all energy must then be included • Energy covered by CCA/EU ETS not in scheme • Exemptions for CCAs (if 25% subsidiary in CCA) • VMs to take responsibility for dealers

  6. CRC – timeline

  7. SMMT’s key concerns • Does not appear a simple scheme • Dealers – burden on VMs, but they have little control • Definition of organisations – knowing legal structure • Impact on cash flow a concern • Introductory phase needs to be more ‘lenient’ • Difficult to gauge how much of sector will be covered • Difficult to ascertain how sector will perform relatively • Could impact adversely on electric car demand?

  8. Dealers Change definition of ‘franchise’ ‘Does so exclusively under a trading name provided by the franchisor’

  9. SMMT action • SMMT wrote to Ed Miliband requesting meeting • SMMT meet with DECC on dealer issue • Revised definition of franchise • To respond to consultation – 4 June • CBI to include our franchise definition in their response • To follow up with DECC on dealer issue, and involve BERR • To work with RMIF on dealers energy efficiency • Carbon Trust funded voluntary programme • To undertake another awareness campaign with members

  10. Any questions? For further details mcroucher@smmt.co.uk 020 7344 1640 http://www.defra.gov.uk/environment/climatechange/uk/business/crc/index.htm

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