This document discusses issues with the Carbon Reduction Commitment (CRC) in the UK. It notes that the CRC rewards companies that were inefficient in their baseline year and penalizes early improvers. It also notes that the CRC is complex and encourages gaming the system rather than actual carbon reduction. Additionally, the CRC does not account for outsourced or contracted energy use, allowing companies to avoid responsibility for significant carbon emissions.

1. Energy,
Carbon
and
Clouds
Joe
Baguley
CTO
Europe
Quest
So9ware

2. Will
“green”
reduce
ICT
energy
use?
Data
centres
are
not
light
bulbs
We
replace
a
100W
convenGonal
bulb

3. Will
“green”
reduce
ICT
energy
use?
With
a
20W
high
efficiency
bulb
To
get
the
same
amount
of
light
for
lower
cost.

4. Will
“green”
reduce
ICT
energy
use?
Not
in
a
Data
Centre.
Demand
for
ICT
services
is
elasGc
If
we
make
them
cheaper,
more
will
be
consumed
This
may
mean
more
energy
if
the
elasGcity
is
large
Can’t
claim
“green”
based
on
reduced
energy
consumpGon

5. What
about
the
Carbon
ReducGon
Commitment?

6. The
Carbon
ReducGon
Commitment
• You
“qualify”
if
you
consume
over
600kW
on
half
hourly
meters
(~£½m/yr)
• Measured
against
your
“baseline
year”
• Hope
your
baseline
year
was
a
big
one
• Rewarding
those
who
were
inefficient
in
the
baseline
year
at
the
expense
of
those
who
had
already
improved

7. The
Carbon
ReducGon
Commitment
What
is
the
sGck?
• You
pay
for
carbon
allowances
(like
ETS)
• You
are
put
in
a
“League
Table”
(name
and
shame)

8. The
Carbon
ReducGon
Commitment
Not
that
simple
• You
pay
for
allowances,
• The
revenue
is
then
“recycled”
back
to
you
– Based
on
what
you
paid?
– No,
based
on
your
baseline
year
– Weighted
on
your
posiGon
in
the
league
table

9. The
Carbon
ReducGon
Commitment
So
how
does
the
“League
Table”
work?
• You
are
scored
on;
– Your
net
reducGon
in
carbon
from
previous
years
– Weighted
by
a
revenue
“growth
metric”
• Your
score
is
then;
– Ranked
against
every
other
organisaGon’s
score
• Summing
up
your
“League
Table”
posiGon
is;
– Your
relaGve
performance
against
your
baseline
year,
with
a
relaGve
weighGng
for
growth,
measured
relaGve
to
the
relaGve
performance
of
everyone
else,
with
a
relaGve
weighGng
for
their
individual
growth.

10. The
Carbon
ReducGon
Commitment
• What
can’t
you
do
with
CRC?
– Predict
where
you
will
come
in
the
league
table
– Predict
what
CRC
will
cost
you
– Tell
how
“green”
a
company
is
by
the
league
table
posiGon
– Tell
how
“green”
a
service
or
product
is
from
the
vendor’s
league
table
posiGon,
{construcGon
equipment,
data
centres,
laptops}?

11. The
Carbon
ReducGon
Commitment
The
CRC
is
structurally
flawed
• The
CRC
drives
the
wrong
behaviours
• The
CRC
is
a
complex
accounGng
game
• You
will
probably
get
corporate
&
departmental
targets
for
CRC
• So,
how
do
you
play
the
CRC
game?
– CRC
claims
to
be
“Inclusive”
– But,
CRC
does
not
include
your
contract
carbon…

12. The
Carbon
ReducGon
Commitment
Let’s
look
at
an
organisaGon
• A
number
of
acGviGes
• Each
acGvity
uses
resources
• Each
resource
costs
carbon
The
“Landlord
Tenant”
structure
applies
the
carbon
to
the
“meter
holder”,
not
the
Consumer
of
the
energy

13. The
Carbon
ReducGon
Commitment
• Use
a
Regus
office
and
the
carbon
is
their
problem
• Use
a
Supplier
data
centre
and
the
carbon
is
theirs
• Use
thin
clients
and
even
your
desktop
carbon
is
laundered

14. How
does
this
affect
you?

15. Corporate
• You
will
soon
be
looking
at
accounGng
for
carbon
in
your
organisaGon
• This
will
drive
cost
modelling
of
services
• You
will
be
looking
at
ways
of
reducing
it
• People
are
talking
about
Private
Cloud
• Private
Cloud
will
likely
increase
your
energy
usage
=
Problem
Start
your
outsourcing
plan
now…

16. Physical
Cloud
Operator
• You
will
most
likely
qualify
• Watch
out
for
the
growth
allowance
–
silent
penalty
for
good
work.
• Consider
becoming
a
“Carbon
Sink
Cloud”?
;-­‐)

17. Cloud
user
• It’s
all
good…

18. fin.