CRC Initial Phase (Phase 2)—issues in restructuring and insolvency
CRC Initial Phase (Phase 2)—issues in restructuring and insolvency

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

  • CRC Initial Phase (Phase 2)—issues in restructuring and insolvency
  • What is the CRC Scheme?
  • How did the CRC Scheme work?
  • Insolvency practitioners and the CRC Scheme

Restructuring and insolvency professionals may find themselves working with businesses that have obligations under the CRC Energy Efficiency Scheme (CRC Scheme). This note provides an insight into what such professionals need to know about the CRC Scheme, so that where appropriate, they can effectively help to manage any applicable obligations and are aware of any insolvency specific provisions under the CRC Energy Efficiency Scheme Order 2013, SI 2013/1119 (2013 Order).

What is the 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 may include, for example, public and private companies or their company group, partnerships and government departments. 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 is divided into a number of 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 (Introductory Phase (Phase 1)) ran from April 2010 to March 2014 and contained different requirements to subsequent phases