The Carbon Reduction Commitment (CRC) - Are You Ready? Preparing Your UK Organisation: Five Key Steps

The CRC is a mandatory, auction-based, cap & trade scheme aimed at reducing CO2 emissions in the non-energy intensive sector. It covers UK companies, regardless of where headquartered, and includes public as well as private sector organisations. The scheme is revenue neutral to the exchequer with proceeds from allowances being fully recycled back to participants. Whilst the CRC exhibits many characteristics typical of cap & trade schemes (see box out to the right), its focus on the non-energy intensive sector and use of league table positioning, to determine revenue recycling payments to participants, is currently unique.