Consultation on Streamlined Energy and Carbon Reporting Published

           Carbon and Climate

A consultation on streamlined energy and carbon reporting has been issued, which will essentially be a replacement to the CRC Energy Efficiency Scheme (CRC). If it proceeds, a decision on the new reporting framework will be made by April 2018, and the legislation will come into effect by April 2019. The consultation was published alongside the new Clean Growth Strategy, which sets out a range of approaches to meet the UK’s commitment under the Climate Change Act to reduce greenhouse gases by at least 80% by 2050 (against 1990 levels). Since 1990, emissions have been cut by 42%, but further action is required to meet more demanding targets in future years.

It was announced in 2016 that the CRC would cease in 2019, with 2018/19 being the final reporting year. An increase to CCL was scheduled to replace the lost income stream, while this consultation considers a replacement to the reporting element. The government’s intention is to streamline reporting so that new and existing schemes are based on similar principles. It is proposed that the new reporting will combine elements of both the CRC and mandatory GHG reporting for quoted companies. There will be no change to Climate Change Agreements or ESOS, although ESOS outputs could be included in the new streamlined reports for information purposes only. Total energy consumption could be reported in the form of total GWh, as well as by tCO2, and against an intensity metric. It is also proposed that transport is included, in addition to electricity and gas. It is expected that companies will include these reporting metrics in their annual reports, but views are also being sought on whether a dedicated reporting portal is required. A number of options are suggested as the basis for eligibility, which include the existing large companies criteria for ESOS, or the CRC eligibility criteria. The government is placing importance on the role of carbon reporting, on the basis that “what gets measured gets managed”. The publication of emissions will place the issue of energy efficiency high on the board agenda and will also provide an opportunity to inform stakeholders on green credentials. The government is inviting views on the SECR proposals, which must be submitted by 4th January 2018.


Nikki Wilson

Nikki joined Alfa Energy in September 2015 as a Carbon Management Consultant where she advises clients on legislation, compliance, and the implementation of carbon management schemes. She is a Practitioner member of IEMA, has a postgraduate diploma in Environmental Decision Making, and has over 15 years’ experience in energy consultancy.