The CRC Energy Efficiency Scheme and You

The compulsory Carbon Reduction Commitment Energy Efficiency Scheme (“the Scheme”) came into force earlier this year with the aim of making organisations which use a certain amount of energy a year more efficient. Many of the organisations which are required to fully participate in the Scheme are universities, colleges and other higher education institutions.

All public bodies must take part in the Scheme if they meet the “Qualification Criteria” during the “Qualification Year” for the relevant “Phase”. How the scheme then applies to each institution will depend on where it is based and what its organisation structure is.

The Scheme requires the institution to put systems in place to monitor and collate information about its CO2 emissions as well as regularly reporting to the Environment Agency. The institution will be required to comply with different obligations during each phase of the Scheme. It will also have to estimate how much CO2 it is likely to emit each year and then buy and trade “allowances” on this estimate.

All institutions which are required to participate in the Scheme should ensure that they register with the Environment Agency. If an institute fails to register, a financial penalty can be imposed.

On 17 November 2010, the Government launched a consultation to gain initial views on simplifying the Scheme. The Consultation will remain open until 17 December 2010.