Environment Agency’s CRC FAQs

The Environment Agency has published a brief guide to the CRC explaining how it works and outlining the time table. These concise notes are well worth a look if you are in the dark about the scheme or want to refresh your memory fast.

What will CRC achieve and how?

CRC could deliver emissions savings of 11.6 million tonnes of CO2 a year by 2020.

Analysis indicates that, by improving energy efficiency, CRC will achieve cost-effective emissions reductions, saving participants money, and enabling green growth – benefiting the economy by £1 billion by 2020.

After the three-year introductory phase, Government will limit the number of
emissions allowances available in each phase, setting an absolute cap on the total
emissions permitted for CRC organisations.

What is the Environment Agency role in CRC?

The EA is the lead UK Administrator for the scheme, responsible for running and maintaining the CRC Registry, which will be used to administer the scheme.

We will also audit and enforce the scheme in England and Wales. The other regulators will be the Scottish Environment Protection Agency and the Northern Ireland Environment Agency.

The Environment Agency will also participate in CRC as its electricity use exceeded the 2008 qualification threshold.

What is the Environment Agency doing to cut its emissions?

The EA will participate in the CRC and is committed to improving its environmental performance to set an example to those who we work with, regulate and influence.

Our Internal Environmental Management Strategy sets a target of reducing our own carbon emissions by 30% by 2012. We will also reduce our business mileage by 20%.

In 2009, we won a Sunday Times Big Green Company award for our work.

Where can organisations get practical advice on how to cut energy use?

The Carbon Trust can help prepare for – and profit from – the business opportunities available. Its guide “Managing the Carbon Reduction Commitment as a Business Opportunity” is available at http://www.carbontrust.co.uk/energy/assessyourorganisation/carbon-reduction-commitment.htm

CRC timeline


Scheme begins with a three year introductory phase

Organisations who qualify must register or make an information disclosure by 30 September 2010. A financial penalty will be imposed on organisations who fail to do this by the deadline.


Second compliance year

First sale of allowances takes place in April. Participants can buy allowances at a fixed price of £12/tCO2. Participants will only have to purchase allowances to cover their forecast emissions for 2011/12.


Third compliance year


First capped phase begins.
Auctioning of carbon allowances begins.

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