Brian Hunter, Carbon Reduction Commitment Consultant in Glasgow

The CRC Energy Efficiency Scheme is the UK's mandatory climate change and energy saving scheme.

Arising from the Climate Change Act 2008 which came into force on 1st April 2010 it is central to te UK's strategy for improving energy efficiency and reducing CO2 emmissions. The Climate Change Act called for a reduction in CO2 emissions of 26% of 1990 levels by 2020 and 80% by 2050. Essentially from 2012 each participating organisation will be required to purchase allowances from the Government for each tonne of CO2 that they emit. The current cost of the allowances has been set at £12/tonne for 2012/2013 with a floating market price after that.

The CRC Energy Efficiency Scheme is mandatory for all organisations with an annual electrical consumption in excess of 6,000MWHr (equivalent to an annual electricity bill of about £500,000). The first year of this scheme (since 1st April 2010) is being used as a monitoring and reporeting year with purchases only being required in subsequent years. The first annual report of emmissions is due in July 2011.