What is CRC Scheme?
The Carbon Reduction Commitment (CRC) Scheme is a new Government backed mandatory emissions trading scheme
for the UK.
It is designed to oblige large business and public sector organisations take up cost effective energy efficiency measures
that could save them money as well as reduce carbon emissions.
It will cover large business and organisations using more than 6,000 MWh/annum of electricity. However, all
government departments will participate in the scheme regardless of their size, including the NHS and State Schools.
The Scheme will begin in April 2010. Participating organisations will have to monitor emissions from energy use,
report these emissions annually, and purchase and surrender a corresponding number of carbon emission allowances on a cap and trade basis.
During the initial three-year introductory phase, starting from April 2010, an unlimited number of carbon allowances will
be sold at a fixed price of £12/tonne carbon dioxide (C02) equivalent to £44 per tonne carbon.
Participants' performance will be published in the form of a league table to create a reputational incentive;
a corporate social responsibility driver; as well as providing a basis for the revenue recycling bonus/penalties.
The bonus/penalty rates will increase over time.
From 10% bonus or penalty in year one, +/-20% in year two, to +/-50% by year five.
Read more about CRC Scheme
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