Government legislation - Carbon Reduction Commitment (CRC)
The CRC energy efficiency scheme is legislation that has now come into force as part of the climate change bill. Under this legislation it will become mandatory for all businesses in the UK with annual half-hourly metered electricity useage over 6,000MWh consumed during 2008 to join a cap and trade scheme and report their emissions to the government.
Participating organisations will need to monitor their emmissions and purchase allowances to emit carbon dioxide (CO2). They will have to purchase and surender allowances each year to cover their CO2 emissions. The more CO2 an organisation emits, the more allowances it will need to purchase
The revenues will be kept by the Government, rather than recycle it to participants as previoulsy planned.