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ARTICLE · 26 OCTOBER 2010

How the CRC Efficiency Scheme will affect Landlords and Tenants

Reynolds Porter Chamberlain
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The CRC Energy Efficiency scheme is a mandatory scheme affecting the whole of the UK, which requires participants to annually buy and surrender allowances priced in pounds per tonne to cover the amount of CO2 a participant emits each year.

United KingdomReal Estate and Construction
Mark Lavers
Mark Lavers

The CRC Energy Efficiency scheme is a mandatory scheme affecting the whole of the UK, which requires participants to annually buy and surrender allowances priced in pounds per tonne to cover the amount of CO2 a participant emits each year. It is part of the 2008 Climate Change Act, which was introduced to try to meet the Government's target of reducing greenhouse gases by 80% by 2050. The scheme's main purpose is to drive down energy consumption. This article looks at the CRC and its impact on both Landlords and Tenants.

Fitting the scheme into leases

The Government has not introduced legislation to dictate how the scheme is to be implemented between Landlords and Tenants. The number of existing leases which specifically refer to the scheme is exceptionally low, so very real issues are going to arise as it is fitted into existing leases. The Government hopes that Landlords and Tenants may "revise" lease terms to take into account the effect of the scheme, but will

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