Carbon Reduction Commitment (CRC)


The UK Carbon Reduction Commitment (CRC) Energy Efficiency Scheme is  a legal requirement for qualifying UK businesses. Now in its Phase 2, the CRC leverages a 'carbon tax' for each tonne of carbon dioxide emitted. Failure to carry out an Internal audit, report or to make the required payments carries significant financial penalties. The CRC will end in April 2019.


Helping to meet your CRC compliance

  • Preparation of annual data for compliance
  • CRC Internal Audit 

  • Strategy for purchasing allowances
  • Assistance in compliance submission

  • Support of Environment Agency audit (should your business be selected)

  • Strategy for reducing your annual emissions/cost exposure to CRC

    Contact Carbon Footprint
     to discuss your CRC support needs

What is the CRC?

The CRC is a UK mandatory scheme aiming to cut carbon emissions by 1.2 million tonnes of carbon per year by 2020. It supports the UK target to reduce achieve an 80% reduction in UK carbon emissions by 2050.

The scheme provides an incentive for reducing emissions through improved energy efficiency. The lower your emissions, the lower the cost of CRC to your organisation.

Under the scheme, organisations must have a carbon action strategy, consider energy efficient measures, monitor, assess and manage their carbon emissions.

Phase 2 is now active and runs from April 2014 to March 2019


Who is affected?

The CRC targets large non-energy intensive private and public sector organisations within the UK, whose combined electricity use through half hourly metering exceeds 6,000 MWh per year. 


Are there any exemptions?

Emissions covered within the EU-ETS (EU Emissions Trading Scheme) and CCAs (Climate Change Agreements) are exempt. Subsidiary organisations with over 25% of their emissions within CCAs will be exempt, but not the whole CRC organisation.

What do you need to do?

Each compliance year your organisation must:report1.jpg

  • Collate its energy information and submit a report to the
    Environment Agency
  • Buy and surrender CO2 allowances to cover your CRC emissions   

  • Inform the Environment Agency of any changes in the organisation affecting its registration

  • Maintain an adequate Evidence Pack of all energy records 


CRC Compliance Costs....and Penalties

  • Registration Fee £950
  • Annual subsistence Fee £1,290
  • Allowance Costs 
For Phase 2 there will be two sales of allowances. Allowances bought at the beginning of the compliance year (April) can be purchased at a lower price, based on your predicted emissions. At the end of the year there will be the option to buy additional allowances (July).


CRC Scheme Year Forecast Sale Price  Compliance Sale Price 
 2014/15 £15.60 £16.40 
 2015/16 £15.60 £16.90
 2016/17 £16.10 £17.20
 2017/18 £16.60 £17.70
 2018/19 £17.20 £18.30



  • Failure to register - £5000 plus £500/day registration delayed
  • Failure to report -  £5000 plus £500/day report delayed
  • Failure to disclose information - £500 per half-hourly meter (HHM)
  • Provision of inaccurate footprint - £40/tCO2
  • Failure to surrender allowances - £40/tCO2 


Key dates for the coming year

Compliance Year, CY4 April 2017 - March 2018

Compliance Year, CY5 April 2018 - March 2019 

  • 29 July 2018 Submit annual report for CY2
  • 31 October 2018Surrender allowances for CY2

Contact Carbon Footprint to discuss your CRC support needs