CRC Energy Efficiency Scheme

The CRC Energy Efficiency Scheme is a UK mandatory climate change and energy saving scheme.  It is central to the UK’s strategy for improving energy efficiency and reducing carbon dioxide (CO2) emissions, and has been designed to raise awareness in large organisations and encourage changes in behaviour and infrastructure.

CRC will operate as a 'cap and trade' mechanism, providing a financial incentive to reduce energy use by putting a price on carbon emissions from energy use.  In CRC, organisations buy allowances equal to their annual emissions.  The overall emissions reduction target is achieved by placing a ‘cap’ on the total allowances available to each group of CRC participants.  Within that overall limit, individual organisations can determine the most cost-effective way to reduce their emissions.  This could be through buying extra allowances or investing in ways to decrease the number of allowances they need to buy.

The scheme features an annual performance league table that ranks participants on energy efficiency performance.  Together with the financial and reputational considerations, the scheme encourages organisations to develop energy management strategies that promote a better understanding of energy consumption.