Carbon Reduction Commitment Legislation

What you need to know

What is the Carbon Reduction Commitment?

Carbon Reduction Commitment (CRC) is a piece of legislation which addresses climate change and energy saving. 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 affected include government departments, universities, hospitals, schools, banks, retailers, hotel chains and many others. The scheme is administered by the Environment Agency.

How will it affect my organisation?

The scheme began in April 2010, but no caps will be imposed until 2013, which is when the auctioning of allowances begins.  The finer details of the scheme were the subject of a Government consultation paper in 2009.

Where can I find out more about the CRC?

Please visit: for more information about CRC