Carbon Reduction Commitment Energy Efficiency Scheme Update

CRC-energy-efficiencyThe Carbon Reduction Commitment Energy Efficiency Scheme (CRC EES) is a mandatory carbon emissions trading scheme for large organisations operating in the UK. Having come into effect in April 2010, the aim of the scheme is to help reduce carbon dioxide (CO₂) emissions from large UK businesses. This is part of our country’s legal obligation to cut emissions by at least 80% on 1990 levels by 2050, in accordance with the Climate Change Act 2008. The Chancellor’s Autumn Statement 2012 contained long awaited CRC simplification measures.  The Government has not scrapped the scheme but will simplify it during 2013. Full details of the simplification will be published shortly by Department for Energy and Climate Change (DECC) and a thorough and informative internal White Paper has been produced by Carbon Credentials which can be downloaded at A summary of the main changes to CRC is as follows:

  • Reduce the reporting burden by reducing the number of fuels from 29 to 2 – gas and electricity – with immediate effect
  • The Performance League Table will be abolished
  • The forecast allowance price will remain at £12 per tonne of carbon dioxide in 2013-2014 and will rise to £16 per tonne in 2014-2015
  • From 2015-2016 onwards the allowance price will increase in line with the RPI
  • Introduction of two fixed sales of allowances a year (one forecast and one retrospective)
  • Using only electricity measured by settled half hourly meters (sHMMs) for qualification purposes
  • Removing the 90% and CCA exemption rules
  • Ending the requirement for footprint reports

The government will review the effectiveness of the CRC in 2016. This review will consider whether the CRC remains the appropriate policy to meet industrial energy efficiency and carbon reduction objectives and will consider alternative approaches. The tax element of the CRC introduced at the Spending Review 2010 will be a high priority for removal when public finances allow. Detailed guidance on qualification for Phase 2 was issued on 21st December 2012. If you meet the qualification criteria you are required to register before 31st January 2014 using data for the year from 1st April 2012 to 31st March 2013. firmly believes that organisations now need to move beyond consultancy to make sure that they comply with CRC legislation.  Coupled with Corporate and Social Responsibility (CSR) commitments, organisations really do need to do something to reduce their emissions. specialises in helping out businesses to reduce their carbon footprint by providing proven energy saving products and solutions.



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