CRC Initial Phase (Phase 2)—corporate structures
Produced in partnership with Angus Evers of Shoosmiths LLP
CRC Initial Phase (Phase 2)—corporate structures

The following Environment guidance note Produced in partnership with Angus Evers of Shoosmiths LLP provides comprehensive and up to date legal information covering:

  • CRC Initial Phase (Phase 2)—corporate structures
  • The CRC Energy Efficiency Scheme (CRC Scheme)
  • Structure on qualification day
  • Extent of an 'undertaking' or a 'group'
  • Joint ventures
  • Overseas parents
  • UK-based assets
  • Private equity funds
  • Franchises
  • Trusts
  • more

The CRC Energy Efficiency Scheme (CRC Scheme)

The CRC Scheme is a mandatory UK-wide emissions trading scheme in the UK that aims to cut carbon dioxide emissions and improve energy efficiency in large non-energy intensive public and private sector organisations. Organisations that qualify for the CRC Scheme have to report their emissions, and purchase and surrender allowances for every tonne of carbon dioxide they emit.

The CRC Scheme was introduced using enabling powers from the Part 3 of Climate Change Act 2008, (CCA 2008). The primary details of the CRC Scheme are contained in the CRC Energy Efficiency Scheme Order 2013, SI 2013/1119 (CRC Order).

The CRC Scheme has been split into successive phases. The first phase (the Introductory Phase (Phase 1)) ran from 1 April 2010 to 31 March 2014. The current and final phase runs from 1 April 2014 to 31 March 2019 and was confusingly officially named as the Initial Phase. For the sake of clarity, we refer to this phase as the Initial Phase (Phase 2).

The CRC Scheme will close at the end of the Initial Phase (Phase 2)—following the 2018/19 compliance year. This was announced by HM Treasury on the day of the Budget 2016 (16 March 2016), in a bid to simplify the business energy efficiency tax landscape and confirmed in the CRC