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.
Helping to meet your CRC compliance
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 have to devise 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:
- Collate its energy information and submit a report to the
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
- 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, CY1 April 2014 - March 2015
Compliance Year, CY2 April 2015 - March 2016
- By 31 July 2015 - Submit annual report for CY1
- 30 October 2015 - Surrender allowances for CY1
- 29 July 2016 - Submit annual report for CY2
- 31 October 2016 - Surrender allowances for CY2