CRC Initial Phase (Phase 2)—issues for property lawyers
CRC Initial Phase (Phase 2)—issues for property lawyers

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • CRC Initial Phase (Phase 2)—issues for property lawyers
  • What is the CRC Energy Efficiency Scheme (CRC Scheme)?
  • How does the CRC Scheme work?
  • Landlord and tenant rule
  • Implications of CRC on property acquisitions and disposals
  • Due diligence
  • Property held in trust

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content.

For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources.

What is the CRC Energy Efficiency Scheme (CRC Scheme)?

The CRC Scheme is a mandatory 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 purchase allowances for every tonne of carbon dioxide they emit.

The CRC Scheme is divided into two phases. Each phase contains a series of annual compliance years. There is a qualification year before the start of each phase, which enables organisations to determine whether they need to participate in that phase of the CRC Scheme.

The first phase of the CRC Scheme (the 'Introductory Phase (Phase 1)') ran from April 2010 to March 2014 and contained different requirements to subsequent phases in the CRC Scheme. The current and final phase of the CRC Scheme runs from 1 April 2014 to 31 March 2019