CRC Initial Phase (Phase 2)—trading and surrendering allowances
CRC Initial Phase (Phase 2)—trading and surrendering allowances

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

  • CRC Initial Phase (Phase 2)—trading and surrendering allowances
  • The CRC Energy Efficiency Scheme (CRC Scheme)
  • Allowances
  • Ordering and purchasing allowances
  • Surrendering allowances
  • Special allocation allowances
  • Secondary allowance market
  • Allowance price

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 report ther emissions and purchase and surrender allowances for every tonne of carbon dioxide they emit.

The CRC Scheme has been split into successive phases, with the first phase of the scheme (the 'Introductory Phase (Phase 1)') running from April 2010 to March 2014.

The current and final phase of the CRC Scheme 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 was introduced using enabling powers from Part 3 of the Climate Change Act 2008 (CCA 2008), and the primary details of the CRC Scheme were found in the CRC Energy Efficiency Scheme Order 2010, SI 2010/768 (2010 Order) which set out the requirements for the Introductory Phase (Phase 1). The 2010 Order was replaced and revoked (except as in so far as it relates to the Introductory Phase (Phase 1)) by the CRC Energy Efficiency Scheme Order 2013 (2013 Order), SI 2013/1119, which provides