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The CRC Energy Efficiency Scheme (CRC)

The CRC is a UK government scheme that was introduced in 2008. It is designed to improve energy efficiency and cut carbon dioxide (CO2) emissions in private and public sector organisations that are high energy users, such as supermarkets, local authorities, large companies etc. These organisations are responsible for around 10% of the UK’s greenhouse gas emissions, and 2% of total Welsh emissions

The purpose of CRC

The scheme was designed to reduce greenhouse gas emissions not already covered by CCA and the EU ETS. It features a range of drivers to encourage organisations to develop energy management strategies that promote a better understanding of energy usage.

CRC timeline

CRC operates in phases.  Phase I ran from April 2010 until the end of March 2014. We are now in phase II, which runs from 1 April 2014 to 31 March 2019.  For each phase there is a qualification year. Organisations that meet certain criteria during the qualification year will need to register for the next phase of CRC. The qualification year for phase II was between 1 April 2012 and 31 March 2013.

Organisations affected by CRC have to register with the Environment Agency at the start of a phase and participate for the whole phase.

Requirements for CRC participants

In each compliance year an organisation that has registered for CRC needs to do the following:

  • collate information about its energy supplies
  • submit a report about its energy supplies
  • buy and surrender allowances equal to the CO2 emissions it generates
  • keep records about its energy supplies and organisation in an evidence pack for at least 6 years

CRC customers in Wales should continue to manage their CRC registrations, reports, purchase and surrender of allowances on the CRC Registry accessed through the Environment Agency’s website.

What we do

We are responsible for auditing, compliance and enforcement of participants in Wales. The Environment Agency administers the scheme for the UK, including the provision of the CRC Registry, advice and guidance. The CRC Registry is used for registration, emission reporting and allowance purchase and surrender. 

CRC closure

In the Budget on 16 March 2016, the Chancellor of the Exchequer announced that the government has decided to close the CRC scheme following the 2018-19 compliance year.

Organisations will report under the CRC for the last time by the end of July 2019 and surrender allowances for emissions from energy supplied in the 2018-19 compliance year by the end of October 2019.

Streamlined Energy and Carbon Reporting (SECR) - new scheme

In July 2018, the UK government announced its proposed approach to simplify the energy and carbon reporting framework for business and industry. This will replace the CRC Energy Efficiency Scheme, which is closing in April 2019, with a new streamlined energy and carbon reporting (SECR) framework.

You can find guidance about complying with the Streamlined Energy and Carbon Reporting regulations, including greenhouse gas (GHG) reporting, on the SECR website.

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