Action in the UK - Carbon Reduction Commitment
Announced in the Energy White Paper 2007, the Carbon Reduction Commitment Scheme (CRC) (formerly the Energy Performance Commitment) will apply mandatory emissions trading to cut carbon emissions from large commercial and public sector organisations. It covers around 10% of the UK economy wide emissions, and will provide incentives for organisations to save money through energy efficiency.Latest news
- 13 March 2008: consultation on the implementation of the Carbon Reduction Commitment
- 13 March 2008: Analysis of CRC organisation structures in the public and private sectors
Key features of the CRC Scheme
Covers large business and public sector organisations whose annual half-hourly metered electricity use, and 70 kilowatt metered electricity use in Northern Ireland, is above 6,000 MWh.
Designed to cover both direct energy use emissions and electricity use. CRC will also focus on emissions outside Climate Change Agreements and the EU ETS.
Designed to be more “light touch” in terms of administration requirements - relying on self-certification of emissions (backed up by a risk based audit regime) rather than third party verification.
Starts in January 2010 with a three year introductory phase featuring simple fixed price sales of allowances. From 2013 there will be a Government imposed cap on the number of allowances, and all allowances will be sold each year via an auction – a world first for this type of scheme.
Further information
- CRC comment form
- Climate Change Agreements
- Climate Change Simplification Project
- Energy White Paper 2007
- EU Emissions Trading Scheme
Page last modified: 5 June 2008
Page published: 23 May 2007