Carbon & Energy Newsletter - October 2021
Our latest round up of news relating to energy and carbon legislation is below. Key news this month is the opening of Phase 2 of the Industrial Energy Transformation Fund (IETF) in the UK and the launch of the Scottish Equivalent (SIETF). For more details on this and other topics read on…
Industrial Energy Transformation Fund (IETF)
At the end of September (BEIS) launched Phase 2 of the (IETF). Phase 2 is worth around £220 million in funding between Autumn 2021 and 2025 and now includes ‘deep decarbonisation’ projects. Grant funding is available towards the costs of:
- feasibility and engineering studies to investigate identified energy efficiency and decarbonisation projects prior to an investment decision,
- the deployment of energy reduction technologies, and
- technologies that achieve industrial emissions savings. Further information can be found here.
The Scottish Government has also launched its own version of the scheme, which is open to applications from October to December 2021. Further information can be found here.
A review of Streamlined Energy and Carbon Reporting (SECR) statements has been undertaken on behalf of BEIS. The key findings were that, although most statements reviewed were correct, a significant number contained disclosure errors and/or omissions. In particular these related to:
- a lack of information regarding the methodology applied,
- the level of reporting at subsidiary level,
- the appropriateness of the chosen intensity metric, and
- clarity regarding the energy efficiency measure undertaken.
A positive note was that a number of organisations’ disclosures contained a significant amount of additional information over and above the legal requirements. If you have any concerns regarding your SECR statement, then please contact our team.
UK ETS Reporting
This will be the first year of reporting under the new UK ETS scheme. As year-end is fast approaching you should be considering your approach to reporting. We would recommend undertaking the following at this stage:
- contact your verifier to arrange the site audit,
- check that you are collecting the required data,
- confirm there have been no changes to relevant equipment or metering on-site (and inform the EA of any changes if required)
- check you have access to the ETSWAP and UK Registry systems (or are undertaking the application process for this).
UK ETS Allowance Price
The market for UK ETS carbon allowances (UKAs) has been operating since the first auction in May this year. The initial clearing price was £44/tonne and subsequently the price has risen to just over £50/tonne. This is still broadly aligned to the EU ETS scheme allowance price, which has been trading at around €60/tonne. For many organisations this will represent a significant cost, and you should review emissions now, to budget for this cost next year (allowances must be purchased and surrendered by the end of April 2022).
SLR’s Carbon & Energy Management team can provide support in all of the above areas of carbon and energy reporting and management. If you need any assistance or require further information, then please get in touch.