CRC Energy Efficiency Scheme, an Overview
The CRC Energy Efficiency Scheme, or CRCEES is a compulsory scheme to cut carbon dioxide and improve the energy efficiency of large private and public sector organisations in the UK.
The CRC framework is designed to cut carbon emissions by up to 11.6 million tonnes per year by charging a carbon levy to nearly 3,000 organisations that are responsible for roughly 10 % of the UK's carbon and greenhouse gas emissions.
The UK’s most energy intensive industries are already covered by the European Union Emissions Trading Scheme (EU-ETS) and there are cross-overs between the two systems.
The scheme was first announced in a 2007 white paper from the now defunct Department of Trade and Industry as the Carbon Reduction Commitment and renamed to the CRC Energy Efficiency Scheme in April 2010.The CRC was initially designed to aid HM Government's initial commitment to reduce UK carbon emissions by 60% by 2050, compared with 1990 levels, however in October 2008 this commitment was revised to an 80% reduction from 1990 levels by 2050.The CRC scheme is given legal powers by the Climate Change Act, 2008; the world’s first long-term legally binding framework to tackle the dangers of climate change, while full details are given in the CRC Energy Efficiency Scheme Order 2010.Participation
All organisations that were supplied with electricity from a settled half-hourly meter in 2008 qualify for the scheme, however, only those organisations that had at least one half-hourly meter and consumed over 6,000 MWh (megawatt hours) of electricity supplied on the half-hourly market are required to participate in the CRC scheme. Additionally, in order to lead by example, all UK central government departments and devolved administrations must participate in the CRC as “mandated participants” no matter how much electricity they consume.
Administration of the scheme is carried out by the Environment Agency who handles registration, reporting and carbon credit transactions via the online CRC registry. Participants can be audited by one of the UK’s regional environment agencies.
CRC Timeline
The CRC Energy Efficiency Scheme (CRCEES) is split into phases. There is a qualification year prior to each phase and participants must submit a footprint report at the start of each phase of the CRC. For the remainder of the phase, organisations must submit a less detailed annual report and buy and sell carbon allowances each year. A performance league table will be published each year with organisations ranked using various coefficients, including the “early action metric”. The CRC reporting year runs from April 1st to 31st March, and organisations must submit reports to the CRC registry by the last working day of July each year.
In July 2012 participating organisations will surrender carbon credits for the first time, priced at £12 per tonne of CO2. These allowances were initially to be recycled and paid back to the best performing organisations, however in October 2010 the Government revised this and will now retain all revenue from participants. This effectively makes the CRC scheme a straight carbon tax on energy emissions.
CRC timeline supplied by the Department of Energy and Climate Change:
CRC timeline supplied by the Environment Agency:
How can Carbon Calculated help?
Our Enterprise Carbon Management software covers all the rules and regulations of the CRC Energy Efficiency Scheme (CRCEES), allowing you to automatically capture, manage and report your organisation's CRC emissions.
For more information contact us and follow us on twitter for CRC updates.
