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ARTICLE · 09 OCTOBER 2013

Recent Changes To The UK's Carbon Emissions Trading Scheme

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The CRC Energy Efficiency Scheme Order 2013 came into force on 20 May this year.

United StatesEnergy and Natural Resources
Chris Papanicolaou
Chris Papanicolaou
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The CRC Energy Efficiency Scheme Order 2013 came into force on 20 May this year.  It introduces various changes to the UK's stand alone mandatory system of carbon emissions trading (the "CRC"). The new rules introduce certain simplification changes that were announced by the Government in December 2012 following a long process of consultations.

The main purpose of the original CRC, which came into operation on 1 April 2010, remains. It aims to intensify energy efficiency improvements of large private non-intensive energy users and public sector organisations too small to qualify under the EU emissions trading system. The cost of participation should be far outweighed by the energy efficiency cost savings the scheme encourages. At the same time the CRC contributes to the necessary carbon emissions reductions that the UK has to meet through its international climate change commitments.

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