Carbon Reduction Commitment Energy Efficiency Scheme

The Carbon Reduction Commitment scheme is now known as the CRC Energy Efficiency Scheme or the CRC scheme.

The CRC Energy Efficiency Scheme is a mandatory government scheme which came into force in 2010 and aims to significantly reduce UK Carbon Emissions in the non-energy-intensive business sector. The scheme is administrated by The Environment Agency.

Being a CRC scheme participant involves:

• measuring and reporting on annual carbon emissions annually using a set of measurement rules;
• buying an allowance from the government to cover your emissions - this may lower your energy costs;
• appearing in the publicly available league table which shows how each participant performs in relation to others in the scheme.

Is your business affected by the CRC Energy Efficiency Scheme?

If your business has an annual electricity bill of approximately £500,000 or uses more than 6,000MWh per year of electricity, then you are affected by the Carbon Reduction Commitment scheme.

You are also eligible for the CRC scheme if you, and any subsidiaries you may have, have at least one half-hourly electricity meter (HHM) settled on the half-hourly market.

The legislation is aimed at businesses who are non-energy-intensive. Surprisingly, this sector accounts for 10% of the UK’s total carbon mmissions.

The CRC scheme was therefore introduced by the government to complement existing legislation for more energy intensive businesses, such as the Climate Change Agreements and the EU emissions Trading Scheme.

Measuring your carbon emissions for the Carbon Reduction Commitment scheme.

As the scheme was started in 2010, the first annual report of emissions was due in July 2011. To find out more about measuring and reporting contact The Environment Agency

Buying your carbon emissions under the CRC Energy Efficiency Scheme.

From 2012, your organisation should buy an allowance from the government each year to cover your emissions from the previous year.

The allowance price is now set at £12 per tonne of carbon dioxide, as determined in the 2011 Budget.

How does the public league table affect you?

The CRC public league table shows how each participant is performing and compares them with others in the scheme. This means that businesses with better carbon performance will benefit from having their reputation publicly boosted.

What are the benefits of the CRC Energy Efficiency Scheme?

Environmentally, the scheme helps you reduce emissions. Overall, the aim of the CRC scheme is to reduce the carbon emissions from this sector by at least 4million tonnes a year by 2020.

Financially, you can reduce the amount you spend on emissions allowances by cutting emissions. This could mean you gain a financial advantage over competitors.

In terms of your reputation, there is a distinct benefit in being able to publicise your commitment to the environment and your position in the league table, particularly when ranked among competitors.

Speak to one of our expert energy advisors - call 0800 688 8568.