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CRC - Carbon Reduction Commitment

The Carbon Reduction Commitment (CRC) is a new carbon trading scheme, run by DECC (formerly DEFRA) and the Environment Agency, aimed at reducing the CO₂ emissions of medium to large UK-based organisations and businesses.

If your company has one or more half-hourly (HH) electricity supplies and consumes in excess of 6,000MWh (roughly equating to a £500,000 annual electricity spend) in 2008, you will be required to purchase enough carbon allowances to cover your annual emissions.

The CRC is designed to account for emissions outside of the existing Climate Change Agreement (CCA) and EU Emissions Trading Scheme (EU ETS) and encourage energy efficiency across UK business and industry.

If your company does not have one or more half-hourly electricity supplies, you will not be involved in the CRC, if you do but your 2008 half-hourly metered electricity consumption is less than 6,000MWh, you will have to submit details of your half-hourly meters and 2008 consumption to DEFRA, but will not be involved in the first purchasing stages of the CRC. If you have more than one half-hourly electricity supplies and your half-hourly metered consumption exceeds 6,000MWh but you are not the highest UK based organisation for your group of companies, your annual emissions will count towards your organisations total and will be required to submit annual fuel consumption and CO2 emissions data to DEFRA. If you have more than one hour hourly electricity supplies, your half-hourly metered electricity consumption exceeds 6,000MWh and you are the highest UK based organisation for a group of companies, you will be required to purchase Carbon Allowances to cover your organisations CO2 emissions either from the DEFRA run Carbon Allowance Auctions or via EU-ETS.

For further information on CRC please use the following page links;

Timescale
Costs and benefits
Registration
Next steps
How can ENER-G help?

Alternatively contact us on +44 (0)845 300 8882 or email: em@energ.co.uk.  

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