If a farm or group of farms beats
their CCA milestone target they will have saved more
energy and hence CO2 than required. These savings can
be turned into CO2 Allowances. These Allowances can be
traded in the UK Emissions Trading Scheme but only if
the data upon which they have been generated has been
independently verified.
What is Verification?
The process
of verification involves checking the validity of your
energy and production data for the milestone year to
confirm your performance versus your CCA target. This
can only be undertaken by a UKAS accredited verifier.
| Why should
I get my emissions verified? |
| • |
CO2 allowances can have a financial
value if sold. |
| • |
Allowances can be banked and used
at a later date to meet |
| |
future milestone targets. |
| • |
Banked allowances can be sold
at any time |
| |
(or when the price is right!). |
Another important reason to consider verification relates
to multi-site companies. If you wish to transfer CO2
allowances between sites performing well and sites
performing badly
you will need to have emissions verified (unless all
your sites are in a single "bubble" target unit).
The value of CO2 allowances can only be realised if
your emissions are verified. Providing the cost of verification
is less than the value of the CO2 allowances it is
logical
to have your emissions verified.
What extra data is needed?
The annual data you submit
to Enviros is sufficient for most CCA purposes but
does not
contain enough detail for the verification of CO2 allowances.
Each company undergoing verification needs to show
an audit trail for energy and production figures. This
will
include
meter readings from your main electricity and gas meters,
copies of energy invoices, details of how production
data is calculated etc. If you are keeping an "evidence
pack" as recommended in Information Sheet 23 you will
have the majority of extra data readily available.
Are there any further benefits?
The main upside is
the possibility of the price of CO2 rising. Another
benefit
is that sites that have been verified are unlikely
to be selected by DEFRA for random audits. If you
would like
further information about verification please contact
the CCL Help Line on 0161 874 3668 or click
here to e-mail us.
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