Collection: CRC Energy Efficiency Scheme

By HM Government


The CRC Energy Efficiency Scheme (or CRC Scheme) is designed to incentivise energy efficiency and cut emissions in large energy users in the public and private sectors across the UK, who are together responsible for around 10% of the UK’s greenhouse gas emissions. Participants include supermarkets, water companies, banks, local authorities and all central government departments.

Organisations that meet the qualification criteria are required to participate, and must buy allowances for every tonne of carbon they emit.

The scheme is expected to reduce, non-traded carbon emissions, by 16million tonnes by 2027, supporting our objective to achieve an 80% reduction in UK carbon emissions by 2050.


A summary of steps to determine whether your organisation qualifies for participation in the CRC and more information on qualification are to be found on the Environment Agency CRC webpages.

Compliance requirements

Organisations, which participate within the CRC, are required to monitor their energy use, and report their energy supplies annually. The Environment Agency’s reporting system applies emissions factors to calculate participants’ carbon dioxide (CO2) emissions on the basis of this information.

Participants must purchase and surrender allowances for their emissions. Allowances can either be bought at annual fixed-price sales, or traded on the secondary market. One allowance must be surrendered for each tonne of CO2 emitted.

In the current phase, participants have the option of buying allowances in advance in the cheaper ‘forecast sale’ at the start of a compliance year, or in a more expensive ‘compliance sale’ after the end of the year.

For the current phase, the following prices have applied so far:

CRC Scheme Year Forecast Sale Price Compliance Sale Price
2014/15 £15.60 £16.40
2015/16 £16.10 £16.90

More information on reporting and allowance sales is available on the Environment Agency CRC webpages.

Further guidance

Official guidance on all aspects of complying with the CRC Scheme is available from the Environment Agency web pages.

Source:: Collection: CRC Energy Efficiency Scheme