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

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)—issues in corporate transactions
  • The CRC Energy Efficiency Scheme
  • Qualification for the CRC Scheme
  • Participant equivalents
  • Joint and several liability
  • Disaggregation
  • CRC Scheme reporting obligations
  • Overseas parents
  • Cashflow and accounting issues
  • Directors’ duties
  • more

The CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme (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. For a brief summary of the CRC Scheme, including the different phases, its origins and the qualification criteria, see Practice Note: The CRC Energy Efficiency Scheme.

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 Energy Efficiency Scheme (Revocation and Savings) Order 2018, SI 2018/841, which is in force from 1 October 2018. Instead, it will be replaced with an increase in the climate change levy. For more information on the closure of the scheme, see Practice Note: CRC—key changes—The end of CRC and News Analysis: BEIS lays regulations to close CRC Energy Efficiency Scheme from October 2018 and for more on the climate change levy, see Practice Note: Climate change