Bringing Benefits to Business and the Environment
carbon reduction commitment energy efficiency scheme
The CRC Energy Efficiency Scheme (CRC) has been set up under the Climate Change Act 2008.
The CRC is intended to operate as a compulsory, auction-based emissions trading scheme. At first, it will apply to large businesses only (for example, supermarkets and other retailers, large offices and banks) as well as all public sector organisations (i.e. government departments, local authorities, universities, hospitals). They require to register by the end of July 2010. For details of the registration requirements visit the Scottish Environment Protection Agency's CRC page here.
Under the scheme, participants will have to buy and surrender allowances in accordance with their annual energy use. As from April 2011, these will be sold by the government at £12 per tonne of carbon dioxide emissions and there is no limit to the number of allowances that may be purchased. However, as from April 2013 those will be sold by auction and, subject to certain safeguards, a cap will apply to the maximum number of allowances that participants may buy. Participants will be able to comply either by reducing their energy use or by purchasing additional allowances. A league table will rank participants according to performance, rewarding participants who reduce energy emissions and penalising those who do not.