Andrew Jones

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Coming ready or not!
Andrew Jones C.Eng. B.Eng. FIE MCIBSE Managing
Director Sterling Carbon Management
PART OF THE STERLING POWER GROUP
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- The Carbon Reduction Commitment

• My talk will cover
• a little about my involvement with CRC (since
  2006)
• is it good for business the bottom line
• the experiences readiness of companies
• managing challenges risks

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- and me
June 1996 March 2008 Head of Energy Built
Environment for FTSE100 Retailer June 2006
seconded to DEFRA as business advisor Working
within the EPC team for Philip Douglas
Early 2006 formed REF - The Retail Energy
Forum April 2008 formed SCM which now runs
REF and does CRC work
for some of them
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- and business
- focus is on Climate Change, on risks not
just on costs!
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- Climate Change the risks
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- Climate Change the policies
Announcements 15 July by BIS, DECC, DfT

• Low carbon Transition Plan
• how the Government will meet the first
  five-yearly Carbon Budgets under the Climate
  Change Act
• Low carbon Industrial Strategy
• Government plans to support the UKs low carbon
  technologies and services sector
• Low carbon Transport Strategy
• range of possible approaches for low carbon
  transport, including technology, alternative
  fuels, trading and behavioural changes
• Renewable Energy Strategy
• how to meet the targets under the Renewable
  Energy Directive

Manage the bottom-line risk!
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- in perspective
Concentrate on the 8 pences not the
half-pences. Save the lot not just the tax.
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- in perspective and in focus
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- and business

• we need to mitigate adapt to climate change
• we need to make our contribution to GHG
  reduction
• we need to manage the financial impact

• business would like to have some control not
  just be hit by taxes
• the CBI favours cap trade methods to e.g
  doubling CCL

• CRC provides -
  opportunity to trade -
  incentives for action -
  gets the attention of the Board
  
  BUT

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- are we ready?

agree
disagree
unsure
I have all the information I need to be able to
participate fully when the scheme is launched
next April 
I can comply with the Governments requirements
with existing staff  
I anticipate using external advice and support  
I think the scheme has a valuable contribution to
make to a cleaner environment  
I believe the way the scheme has been costed
seems fair  
I would like to meet with a group of other large
energy customers to compare notes
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- are we ready?

• Very complex and elaborate scheme.
• Scheme seems unfair to those companies who have
  already made investment to improve their
  efficiency reduce carbon.
• Internal staff can deal with the CRC but we
  will make selective use of external staff for
  specific energy efficiency projects.

• We have concerns around the split of
  absolute/relative emission reductions in the
  reward mechanism, excessive penalties and the
  treatment of on-site renewable generation.
• Not enough focus on the financial management of
  the scheme i.e. getting financial
  executives involved.
• I think it is important that the Government
  makes the right moves itself.

• We will not be full participants but I believe
  that one day the bar will be lowered so that
  we will have to join.

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- are we ready?
Check Qualification Get ready to Register
Develop Carbon Reduction Plans Pay Fees
Register
Implement Carbon Reduction Plans Buy
Allowances Report, report, report Keep going
for ever
Keep above the mid-point for ever?!
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- registration be ready!

• What has to be done?
• check if it means YOU.
• if not full reporting .. then information
  disclosure?

• get joined-up understanding in your company.
• get your organisation mapped contacts
  identified.
• get your data marshalled and shipshape.
• work out if applicable 90 is met from core
  sources .. prepare residual list?
• decide if you want to report on 90 or 100.

• manage the impact by implementing CO2 reduction
  actions.

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Climate Change - a final thought
tacking climate change could create
opportunities for a company to increase its value
by up to 80 if it is well positioned and
proactive. Conversely it could threaten up to
65 of value if the company is poorly positioned
or a laggard Carbon Trust and McKinsey 2008
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Andrew Jones C.Eng. B.Eng. FIE MCIBSE http//www
.sterling-power.co.uk/ 0121 585 4080
PART OF THE STERLING POWER GROUP