The voluntary initiative, organised by Carbon Action Yorkshire, simulates the requirements of the forthcoming Carbon Reduction Commitment (CRC) cap and trade scheme through a virtual trading platform. It covers auctioning of credits, trading and carbon reduction strategies.
Firms involved, ranging from banks to hospital trusts and local authorities, reflect the profile of those who will be affected by the CRC introductory period from 2010. Bodies will gain experience in emissions reporting, and least risk strategies for abatement through reduction or carbon credit trading.
An overall cap will be assessed from baseline emissions data over the last 12 months, provided by member organisations. From this, organisational allocations will be calculated, likely to be between 5-10% below current levels.
As with the CRC, organisations will have to buy carbon allowances up-front on trading days once a month. There will be no free allocation, encouraging mitigation or carbon trading.