Climate change & energy

Carbon reduction commitment

The Carbon Reduction Commitment (CRC) is an innovative emissions trading scheme being introduced by Government to cover large business and public sector organisations. CRC will increase these organisations’ contribution to cutting the UK's emissions - and also offer the potential for saving money by way of energy efficiency.

The CRC is a new mandatory emissions trading scheme which will begin in January 2010.  The CRC will target energy use emissions primarily from large non-energy intensive organisations such as large retail organisations, offices, banks, universities, hospitals, large local authorities and central government departments. CRC is designed to drive energy efficiency and deliver carbon savings through introducing new financial incentives and environmental responsibility drivers.

Government has proposed that qualification for CRC be based on electricity consumption through “half hourly meters” (Government is referring to meters through which electricity supplied has been settled half hourly in Great Britain and for Northern Ireland 70kVA electricity meters). During February, March and April 2008 the major energy suppliers will be mailing out leaflets, on behalf of Defra, to all of their customers with half hourly meters - informing them that the Carbon Reduction Commitment (CRC) is coming and that 2008 is the qualification year for the scheme (ie, the extent of half hourly electricity use in 2008 will determine whether an organisation is included in the scheme). If you have received a leaflet and are not sure whether you have one of these types of electricity meters, please contact you energy supplier.

To be added to the CRC stakeholder list please complete our web based form. The form will also allow you to assist us with the identification process by allowing you to indicate whether you think your organisation will or will not be participating in the scheme. If you are not sure whether your organisation will qualify for the scheme, then the form will allow you to send us any questions.

What happens next?

  • At the start of 2009 all organisations with half hourly meters in Great Britain and 70kVA electricity meters in Northern Ireland will need to gather information about their electricity consumption through these meters between 1st January 2008 and 31st December 2008 to identify if the organisation as a whole consumed over 6,000 megawatt-hours (MWh) of electricity through these meters.
  • Government plans to issue a detailed consultation on the CRC regulations over summer 2008.  The Climate Change Bill contains enabling powers to introduce new trading schemes, including CRC.
  • Although qualification for the scheme is based on electricity consumption through half hourly meters, once qualified for the scheme emissions from all types of energy use (i.e. electricity, gas, fuel oil, etc) will be included.

CRC: further information

Page last modified: 25 March 2008
Page published: 1 February, 2008

Department for Environment, Food and Rural Affairs