The UK’s Carbon Reduction Commitment Energy Efficiency Scheme will mean changes for businesses when Phase 2 begins – the rules for eligibility are different and the allowance pricing is set to increase.

1. www.energ.co.uk/procurement
The ABC of the CRC
Phase 2
The UK’s Carbon Reduction
Commitment Energy Efficiency
Scheme will mean changes for
businesses when Phase 2 begins
– the rules for eligibility
are different and the allowance
pricing is set to increase.

2. What is it?
The CRC Energy Efficiency Scheme is a mandatory government
programme that was designed to help achieve the UK’s
Carbon Reduction Commitment goals of cutting carbon
emissions.
Carbon reduction goal: by 2020, to reduce carbon emissions in
the UK by a third from 1990 levels.

3. What is it?
The CRC Energy Efficiency Scheme is a mandatory government
programme that was designed to help achieve the UK’s
Carbon Reduction Commitment goals of cutting carbon
emissions.
Carbon reduction goal: by 2020, to reduce carbon emissions in
the UK by a third from 1990 levels.

4. What is it?
The CRC Energy Efficiency Scheme is a mandatory government
programme that was designed to help achieve the UK’s
Carbon Reduction Commitment goals of cutting carbon
emissions.
Carbon reduction goal:
By 2020, to reduce carbon emissions in the
UK by a third from 1990 levels.

5. Who participates?

6. Who participates?
Most large public and private sector organisations must
participate in the CRC scheme.

7. Who participates?
Most large public and private sector organisations must
participate in the CRC scheme.
10% of UK carbon emissions are
produced by large public and
private sector organisations.

8. Eligible organisations
for Phase 1:
Those using more than 6,000MWh of electricity through
half-hourly meters in 2008 (when scheme began). This
equates to around £500,000 per year in energy bills.

9. How does the CRC
currently work?

10. 1
How does the CRC
currently work?
Participants must report annually on their
carbon emissions.

11. 1
2
How does the CRC
currently work?
Participants must report annually on their
carbon emissions.
Participants buy allowances to offset their
carbon emissions.

12. 1
2
3
How does the CRC
currently work?
Participants must report annually on their
carbon emissions.
Participants buy allowances to offset their
carbon emissions.
Companies who reduce their carbon emissions
decrease the number of allowances they need to buy.

13. When does it all happen?
The CRC is divided into phases.
APR
2010

14. When does it all happen?
The CRC is divided into phases.
Phase 1
Phase 1 runs from
April 2010 to March 2014.
Cost of allowances:
£12 per tonne of carbon emitted.
APR
2010

15. What this looks like on your bill:

16. What this looks like on your bill:
Approx 0.65p/kWh
on electricity costs
(£39,000 on 6,000MWh).

17. What this looks like on your bill:
Approx 0.65p/kWh
on electricity costs
(£39,000 on 6,000MWh).
Approx 0.22p/kWh
on gas costs

18. Phase 2
There is a second phase for the CRC
– and all the rules change! The rules
for eligibility are different and the
allowance pricing will increase over
time.
Phase 2 runs from April
2014 to March 2019.
All organisations must
re-apply for Phase 2!
APR
2014

19. The current timeline for the CRC
4 November 2013
to 31 January 2014:
Companies must
register for Phase 2.

20. The current timeline for the CRC
April 1 2014:
Phase 2 starts.

21. The current timeline for the CRC
Q2 2015:
First annual reports
due for Phase 2.

22. The current timeline for the CRC
March 2019:
Phase 2 ends.

23. The current timeline for the CRC
2019 to 2039:
Four more phases of
five years each.

24. The current timeline for the CRC
2039:
Final phase starts.

25. What to look out for in Phase 2

26. What to look out for in Phase 2
Carbon prices will go up after April 2014!
• The government is putting legislation in
place suggesting that allowances may be
auctioned or traded in Phase 2.

27. What to look out for in Phase 2
Carbon prices will go up after April 2014!
• The government is putting legislation in
place suggesting that allowances may be
auctioned or traded in Phase 2.
• Companies qualify for Phase 2 if they
consumed over 6000MWh of total
half-hourly electricity during the
qualification year (April 2012 to
31 March 2013).
• Further criteria apply if any site holds
a Climate Change Agreement (CCA)
or participates in the European Union
Emissions Trading Scheme.

28. What to look out for in Phase 2
• The government has made 46 changes that
aim to create a ‘new, leaner, simplified and
refocused CRC’.
• These include the removal of the 90%
rule (which requires all participants
to account for at least 90% of their
carbon footprint emissions) and
fewer fuels to report on.

29. What should I be doing?

30. What should I be doing?
Phase 2 will bring the CRC back into focus for UK
businesses, because allowance prices may fluctuate.
So:

31. What should I be doing?
Phase 2 will bring the CRC back into focus for UK
businesses, because allowance prices may fluctuate.
So:
• Check if you’re eligible for registration.

32. What should I be doing?
Phase 2 will bring the CRC back into focus for UK
businesses, because allowance prices may fluctuate.
So:
• Check if you’re eligible for registration.
• Keep up-to-date with government updates surrounding
CRC.

33. What should I be doing?
Phase 2 will bring the CRC back into focus for UK
businesses, because allowance prices may fluctuate.
So:
• Check if you’re eligible for registration.
• Keep up-to-date with government updates surrounding
CRC.
• Develop an energy efficiency strategy.

34. What should I be doing?
Phase 2 will bring the CRC back into focus for UK
businesses, because allowance prices may fluctuate.
So:
• Check if you’re eligible for registration.
• Keep up-to-date with government updates surrounding
CRC.
• Develop an energy efficiency strategy.
• Make sure that you measure and record on energy
consumption in a suitable format.

35. Do you have a CHP to reduce your carbon emissions
and the impact of the CRC?
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procurement is aligned:
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