CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme (the CRC Scheme)—where CRC stands for ‘carbon reduction commitment’—was a mandatory UK-wide emissions trading scheme. It was intended to incentivise large non-energy-intensive public and private sector organisations to implement energy-efficient measures to reduce their carbon dioxide emissions. It was also an environmental tax. For further information, see Practice Note: CRC Energy Efficiency Scheme—an introduction.

What is the current status of the CRC Scheme?

The CRC Scheme was abolished following the 2018/19 compliance year, in accordance with the announcement made by HM Treasury (HMT) in the 2016 Budget.

The CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018, SI 2018/841 (the 2018 Order), in force from 1 October 2018, brought the CRC Scheme to an end with effect from the expiry of the final phase on 31 March 2019, while ensuring that ongoing compliance obligations in respect of that phase (and the prior phase) survive after that date. Businesses were required to surrender CRC Scheme allowances for the final time in October 2019.

HMT, in partnership with the Department of Energy and Climate Change, has

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