The UK Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is  a legal requirement for qualifying UK businesses. Now in its Phase 2, the CRC leverages a 'carbon tax' for each tonne of carbon dioxide emitted. Failure to carry out an Internal audit, report or to make the required payments carries significant financial penalties. The CRC will end in April 2019.

What is the CRC?

The CRC is a UK mandatory scheme aiming to cut carbon emissions by 1.2 million tonnes of carbon per year by 2020. It supports the UK target to reduce achieve an 80% reduction in UK carbon emissions by 2050.

The scheme provides an incentive for reducing emissions through improved energy efficiency. The lower your emissions, the lower the cost of CRC to your organisation.

Under the scheme, organisations must have a carbon action strategy, consider energy efficient measures, monitor, assess and manage their carbon emissions.

Phase 2 is now active and runs from April 2014 to March 2019

Who is affected?

The CRC targets large non-energy intensive private and public sector organisations within the UK, whose combined electricity use through half hourly metering exceeds 6,000 MWh per year. 

Are there any exemptions?

Emissions covered within the EU-ETS (EU Emissions Trading Scheme) and CCAs (Climate Change Agreements) are exempt. Subsidiary organisations with over 25% of their emissions within CCAs will be exempt, but not the whole CRC organisation.

What do you need to do?

Each compliance year your organisation must:

• Collate its energy information and submit a report to the
  Environment Agency

• Buy and surrender CO₂ allowances to cover your CRC emissions   

• Inform the Environment Agency of any changes in the organisation affecting its registration

• Maintain an adequate Evidence Pack of all energy records 

CRC Compliance Costs....and Penalties

• Registration Fee £950

• Annual subsistence Fee £1,290
• Allowance Costs