As energy management consultants, we are playing a lead role in guiding our clients through the new Carbon Reduction Commitment (CRC)

What is Carbon Reduction Commitment – CRC?

From April 2010, the CRC will be a mandatory cap and trade scheme for non-transport CO2 emissions. Any organisation that consumes more than 6,000 MWh of electricity per year through half hourly meters, equivalent to approximately £500,000, will qualify for inclusion in the CRC. As many as 5000 of the UK’s largest organisations will be affected including government departments, local authorities, retailers, banks, hotels, hospitals, telecoms companies, water utilities and financial services organisations.

The scheme requires participants to annually purchase allowances from the government to emit CO2 from certain sources. CRC eligible sources are fixed point sources, mainly electricity, gas and oil used for heating. Each participant will report emissions every year and will be ranked according to their success in reducing emissions. The government will return the money paid in allowances each year with a bonus or penalty based on the published league table position of the participant.


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