Get help with CRC legislation

CRC legislation was given a statutory footing when the Climate Change Act 2008 received Royal Assent on 26 November 2008. The Act introduced targets and a framework for initiatives aimed at reducing carbon emissions and encouraging investment in renewables, low carbon technology, energy efficiency and new power plants. The UK has a legally-binding target of reducing green house gas emissions by:

• At least 26% by 2020
   
• At least 80% by 2050 (working against a 1990 baseline)
   

One of the measures being introduced under the 2008 Act to reduce carbon emissions is the Carbon Reduction Commitment Energy Efficiency Scheme. CRC legislation is expected to affect approximately 5,000 organisations in the UK. In doing so, it is anticipated that the scheme will affect 25% of total business sector emissions within the UK.

CRC legislation will address climate change, energy efficiency and renewable energy. It is a compulsory, auction-based cap and trade scheme for large, non energy-intensive businesses and organisations. It applies to large businesses and public sector organisations whose annual electricity consumption is over 6,000 MWh (Megawatt Hours) and who are not already part of the EU-ETS (European Union Emissions Trading Scheme) or covered by Climate Change Agreements. It covers emissions from all energy usage including gas used for heating and cooking, plus all electricity use; transport is excluded. Organisations likely to be affected include government departments, universities, hospitals, schools, banks, retailers, hotel chains and many others. The scheme will be administered by the Environment Agency.

CRC legislation applies throughout the UK and is intended to come into force in April 2010 and to reduce emissions by 1.2 million tonnes of carbon per year by 2020. Energy-use at an organisation's facilities which is already covered by the EU Emission Trading Scheme (EU ETS) or under a UK Climate Change Agreement (CCA) will be exempt. Companies within an organisation's group, with more than 25% of their energy-use emissions in CCAs, will also be exempt from the CRC. However, the rest of the group will still have to participate in the scheme.