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Carbon Reduction Commitment

What is the Carbon Reduction Commitment (CRC) energy efficiency scheme?

The CRC is a mandatory emissions trading scheme established in April 2010 with the goal of improving energy efficiency in large public and private sector companies. It is run by the NI Environment Agency on behalf of the Department of Energy and Climate Change.

Am I affected?

If you have at least one >70kVA site with a half-hourly meter (HHM), you will be required to do something under the CRC. In 2008 if, through your HHMs, you used:

  • more than 6,000,000 units of electricity (6,000 MWh), you will be required to participate fully
  • more than 3,000 MWh but less than 6,000 MWh, you will be required to make an ‘information disclosure’ providing full details of your energy use
  • less than 3,000 MWh, you will be required to provide contact details and complete the appropriate on-line form

How will ‘emissions trading’ work?

If the CRC regulations apply to your organisation, you will have to buy ‘carbon allowances’ to match the carbon emissions from your energy use. These allowances will be traded in subsequent years and organisations that improve their energy efficiency performance will enjoy financial benefits while those that do not will incur financial penalties. Put simply, if you use less energy you will enjoy lower bills and be required to buy fewer carbon allowances.