Carbon Reduction Commitment

The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme (formally known as the Carbon Reduction Commitment) is the UK's mandatory climate change and energy saving scheme. The scheme started in April 2010 and is administered by the Environment Agency. It is central to the UK's strategy for improving energy efficiency and reducing carbon dioxide emissions, as set out in the Climate Change Act 2008. It has been designed to raise awareness in large organizations, especially at senior level, and encourage changes in behaviour and infrastructure. This is vital to achieving the UK's overall targets of reducing greenhouse gas emissions by 2050 by at least 80 percent compared to the 1990 baseline.

Under this scheme, organisations which use at least one Half Hourly electricity meter and greater than 6,000 MWh of electricity per year are required to report on the CO2 emissions associated with their total energy consumption (electricity + other energy sources) except that associated with transport or onward supply.

CRC will affect large organisations in both the public and private sector. Organizations that meet the qualification criteria (based electricity consumption in 2008), will be obliged to participate in CRC. Participating organizations will have to monitor their emissions and purchase allowances, initially sold by Government, for each tonne of CO2 they emit. This provides a direct incentive for organizations to reduce their emissions.

In June 2011, the UK government published tentative proposals for simplifying the CRC. These proposals are due for public consultation in 2012 with a view to full implementation in 2013.

AMEE provides data and emissions calculations based on the data and calculating methodology specified in the latest (22nd January 2010) documentation published by the Department of Energy & Climate Change.