The Carbon Reduction Commitment Energy Efficiency Scheme

The CRC scheme only applies in the UK and is a legal requirement.

Qualifying companies with an electricity consumption in 2008 excess of 6,000 MWh (equivalent to >£500,000 p.a.) must participate in the scheme, and those consuming less electricity will make an information disclosure. Participants must audit their GHG emissions and report to the EA on an annual basis.

CRC is to incentivise companies to manage an efficient strategy to cut emissions via energy efficiency and operational optimisation. It is expected that the scheme will contribute to 20% emission cuts in the UK in the next decade.

Qualifying companies must purchase carbon allowances from the government at £12 per metric tonne of CO2 that they emit. The more an organisation emits, the higher the allowances bill. Allowances must be then surrendered at the end of each compliance year. A League Table will be published showing the best and worst performers, creating a “reputational” incentive to cut emissions.

Reasons to comply

  1. Significant fines.

    An organisation failing to register will be fined £5,000 and a subsequent £500 per day until registration. There will be a fine of £5,000 for failing to provide an annual report and a fine of £40 per allowance incorrectly accounted for.

  2. League table, PR and reputation

    Organisations failing to comply or being fined will be named. It is likely that the performance of large organisations will attract media interest and a bad position on the League Table is likely to damage reputations. The reputation factor is a stronger incentive to perform well under the scheme and in terms of financial value it is more important than the cost of allowances or any amount of fines (after all the cost of allowances will amount to a small percentage of turnover).


Carbonica provides a solution that is fully integrated in our carbon management strategy, and specifically for the purpose of CRC compliance we support the client with a customised software tool designed for this role.

1. CRC baseline assessment

We assess the carbon audit of your organisation as a baseline and starting point to work on a strategic plan of emission cuts. The measurement of GHG emissions and the starting baseline will be carried out by our carbon experts following Carbon Trust and BSI standards to provide an acceptable benchmark to follow up progress later.

2. Strategic carbon management plan

Carbonica will consult to maximise energy savings by providing advice on operational processes, workplace practices, energy-efficient and environmentally sound offices and buildings, optimised design and efficient energy saving technologies.

The strategic plan will set out a timetable of realistic goals and measurable targets adopting Carbon Trust metrics, aiming to achieve the Carbon Trust Standard.

3. CRC compliance manager and management account

Carbonica provides a dedicated CRC administrator and project manager to take away our clients’ administrative burden to comply with the scheme. We offer support through a software tool that is easy to use (and all training is provided when required) for data capture, carbon accounting and the CRC project manager will put together the compilation of data and annual submission of the carbon emissions report.

The CRC manager will present your data graphically and establish your CRC liability, emissions and report the solutions. Your data will be securely stored and will be accessible to the client from an internet connection.

In order to optimise compliance and minimise the risk of fines, the records will be audited and signed off with the authorisation of the client’s management to control and confirm the accuracy of the records.

5. Carbon allowances compliance

Carbonica provides support through a carbon trading service and will carry out all compliance protocols to purchase carbon allowances and manage your carbon allowances account on your behalf.

6. Energy efficiency recommendations and auditing

As part of the carbon management strategy, we will aim to reduce your organisation’s energy consumption by regularly auditing energy efficiency and issuing a set of recommendations and guidance and timetable for implementation. Our experts have an in-depth knowledge of energy efficiency techniques in construction, buildings renovation and industrial machinery that will be aimed at maximising your energy efficiency and the performance of your carbon management strategy.


Ed Dunning



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