What is the CRC Efficiency Scheme?

Formerly known as Carbon Reduction Commitment, the CRC Energy Efficiency Scheme (CRC) is a new regulatory incentive aimed to enrich energy efficiency and reduce carbon emissions throughout the UK. It is necessary to help us in achieving our target of cutting down the greenhouse gas emissions to 80% by 2050. Launched on 1st April 2010, the CRC Efficiency Scheme is mandatory for large organizations, both in private and public sector. The registration period is till September and the CRC Efficiency Scheme is expected to have an effect on nearly 5,000 organisations in the UK. In doing so, almost 25% of the entire business sector emissions within the UK will be covered.

This UK CRC Scheme will be enforced by different environmental regulators in respective countries—Department of the Environment in Northern Ireland, the Environment Agency in Wales and England and SEPA in Scotland. The responsibility of managing online registration and administering the sale of carbon allowances for the entire UK lies with The Environment Agency.

CRC will work to complement the existing Climate Change Agreements and European Union Emissions Trading Scheme. Therefore, for the organisations where carbon emissions have already been captured by the ETS and CCA, they will not be captured by the CRC. In short, the CRC is intended for low energy-intensive users.

With the scheme now in progress, a lot of organisations will have to spend some time in document preparation to ensure that they fully comply with legal requirements.

Penalties

If your business qualifies for the UK CRC Scheme, non-compliance is not an option. Penalties start off at £5,000 (in addition to £500 per day) for failure to register for the scheme, with additional charges for failure to disclose any relevant information. Penalties could easily exceed £50,000 for incorrect reporting or falsification of records.