The first sale of allowances begins. Businesses must buy allowances to cover their forecasted CO2 emissions for the 2011-2012 CRC year. During the introductory phase (until April 2013), businesses can buy as many allowances as they need to cover the CO2 they produce. During this period, the Government will sell allowances at a fixed price of £12 per tonne of CO2 but allowances cannot be carried over beyond the introductory phase.
Participating businesses will make their second annual Footprint Report. They must surrender any leftover allowances as these can’t be carried over into the capped phase of the scheme.