What you need to do to get ready for the Carbon Reduction Commitment

Originally published 16 September 2009

Keywords: Carbon Reduction commitment, electricity, CRC, carbon emissions, carbon trading scheme

What is the Carbon Reduction Commitment?

If your organisation spent more than £500,000 on electricity across its UK sites in 2008, you are likely to have to comply with a new regulation called the Carbon Reduction Commitment (CRC) which is aimed at curbing carbon emissions.

Some of our clients are preparing for an impact in the order of tens of millions of pounds over the next few years from the CRC, so having a clear understanding of the CRC and what it requires and by when are business critical issues.

The CRC is a mandatory carbon trading scheme under which affected organisations will have to buy carbon credits (or allowances) equivalent to their energy use. Money raised by the sale of the allowances is recycled back to participants by way of a cash sum, based on a number of metrics at the end of each emissions year,