Carbon Emission Reduction Target (CERT)
The Carbon Emissions Reduction Target (CERT) 2008 – 2011 follows on from the Energy Efficiency Commitment (EEC) 2005 – 2008. Revised in 2009, the CERT requires gas and electricity suppliers to achieve targets for a reduction in carbon emissions generated by the domestic sector. The programme itself is known as the CERT and the target for carbon emissions reduction as the CER target. Each supplier's individual target is known as its 'carbon obligation'.
The Electricity and Gas (Carbon Emissions Reduction) Order 2008 and its amending order The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2009 (the Order) provides the statutory basis for the CERT. The Order sets out the overall carbon emissions reduction target to be collectively achieved by suppliers between 1 April 2008 and 31 March 2011. The target is 185 million tonnes of carbon dioxide (lifetime).
Modifications made by the The Electricity and Gas (Carbon Emissions Reduction) (Amendment) 2009 include:
- 20 per cent increase in the scale of the CER target to 185 million lifetime tonnes of CO2
- Inclusion of real time displays (RTDs) and home energy advice packages (HEAs) as qualifying actions, each with a score specified in the legislation
- Increase of the innovation ring fence to 10 per cent of a supplier‘s obligation (or 12 per cent where at least two per cent is achieved via microgeneration)
- Provision of an incentive for the promotion of DIY loft insulation and professional loft insulation top up, where the installation takes place in the period between the Prime Minister‘s announcement of 11 September 2008 and 31 July 2009, and
- Restrictions to the delivery of compact fluorescent lamp (CFL) schemes
The Order requires licensed gas and electricity suppliers, that have at least 50,000 domestic customers (either individually or as part of a group of companies), to meet a carbon obligation. This is set by Ofgem, who apportion the overall target in relation to each obligated supplier’s domestic customer numbers.
Suppliers meet their targets by setting up schemes to deliver reductions in carbon emissions, e.g. delivering loft insulation to low income households or subsidising the cost of cavity wall insulation.
Ofgem have procedures in place to assess suppliers’ schemes, and to oversee progress and compliance. Ofgem must be satisfied that the measures delivered through a supplier’s scheme will result in an improvement in energy efficiency and therefore a reduction in carbon emissions.
Using less energy was highlighted in the government’s Energy White Paper 2007 as being a cost effective way of achieving cuts in carbon emissions. Reducing energy consumption can also improve productivity, reduce household energy bills, and contribute to improved security of energy supply.
The government has committed to the continuous delivery of carbon savings from the domestic sector using some form of supplier obligation until at least 2020. The CERT is part of this and will contribute to the government’s overall Climate Change Programme by cutting carbon emissions in the domestic sector.
Under the CERT activity equivalent to at least 40 per cent of the target must be targeted at certain low-income domestic consumers or those who are over 70 years old; hence the programme also contributes to the government’s Fuel Poverty Strategy.
Below are all the documents relating to the Energy Efficiency Commitment.