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Carbon Reduction Commitment Energy Efficiency Scheme

07 July 2011

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  • For every tonne of carbon dioxide (CO2) emitted from energy use included in the scheme between April 2011 and next March, CRC organisations will need to purchase an allowance in April 2012.
  • Allowance prices will be fixed at £12 during the four-year introductory phase.
  • Organisations should ask for an annual statement from energy suppliers by 31 March 2011 to help calculate emissions. Accurate measurement and reporting of emissions is essential to ensure allowances cover all regulated emissions.
  • Companies must report emissions by the end of July 2011. Companies could face financial penalties for failing to comply with reporting and record keeping rules. Fines could total £45,000 for companies failing to report carbon footprints.
  • Organisations will be ranked in a performance league table in October 2011.


The mandatory cap-and-trade CRC scheme covers CO2 emissions from energy used by large public and private sector organisations. Carbon costs and reputational risk are expected to drive energy efficiency improvements to cut emissions. The introductory phase covers a four-year period. Organisations that have at least one half-hourly meter settled on a half-hourly market and used more than 6,000 MWh of electricity during 2008 must measure and report CO2 emissions from energy use to the CRC Registry. Companies and local authorities will have to purchase allowances for CRC emissions from April 2012. Organisations must dem­onstrate that at least 90% of their CO2 emissions are covered by the EU ETS, CCAs or the CRC.

Why did Trucost produce the guidelines?

Trucost produced the briefing to provide guidelines for the UK Government rules on mandatory reporting under the CRC Energy Efficiency Scheme, in place since April 2010. This cap-and-trade programme covers large public and private sector organisations that are responsible for 10% of UK emissions. The report highlights changes to the CRC (formerly known as the Carbon Reduction Commitment) following amendments to the rules which came into force on 1 April 2011.1 It also provides an update on what companies need to do to comply with reporting requirements.