Firms urged to clue up on carbon trading
BUSINESS leaders are being urged to get up to speed with new carbon trading legislation, which comes into effect next year.
The advice follows a training event organised by Carbon Action Yorkshire (CAY) to help organisations prepare for the new regulations.
The Yorkshire Forward funded programme hope to educate leaders across the region on the benefits of a low carbon economy – Carbon Trading Yorkshire – to learn how to make a smooth transition to carbon trading schemes
From April 2010, carbon permits will have a price and will be traded between organisations.
Financial incentives will be given to reduce carbon dioxide emissions, which means excessive emissions will become very costly.
If a company spends £500,000 or more annually on electricity it is likely it will be required to measure energy usage and report to the Government its usage and pay for the emissions the energy creates.
However, if a company wants to emit more than its carbon allowance, it must buy credits from others who are cleaning up their acts and not using all their allowance.
If it emits less, it has allowances in hand that it can sell to those doing less well using more than their allowance – thus creating a carbon action economy.
Any organisation that pays a UK electricity bill and consumes more than 6,000 MWh of electricity a year will required to participate.
Around 5,000 organisations will be included across the UK with this requirement affecting public bodies, government departments, companies or groups of companies.
Richard Hall, project director at CAY said: “Carbon Trading Yorkshire is a voluntary carbon-trading simulation scheme that is the country’s first regional network for public and private sector organisations.
“It provides an ideal opportunity for participants to learn how to maximise business benefits and reduce the risks of climate change.”
He added: “CAY will help to develop frameworks for carbon trading to maximise our region’s potential within a lower carbon economy.”
