Jurisdiction(s):
United Kingdom

CRC Energy Efficiency Scheme (UK): Legal Overview of Phases, Participation, Reporting, Allowances, Enforcement and Closure

Published by a LexisNexis Environment expert

Practice notes

What was the CRC Energy Efficiency Scheme (CRC Scheme)?

The CRC Scheme was a UK mandatory emissions trading scheme designed to cut carbon dioxide output and enhance energy efficiency among large, non‑energy‑intensive organisations in both the public and private sectors. Participants that met the qualifying criteria had to buy allowances covering every tonne of carbon dioxide they released.

The scheme was structured in two phases, each comprising a series of annual compliance years. Before each phase began, there was a qualification year to help organisations determine whether they were required to participate in that phase.

Introductory Phase (Phase 1): ran from April 2010 to March 2014 and imposed requirements that differed from those in the following phase.
Initial Phase (Phase 2): the second and final phase ran from 1 April 2014 to 31 March 2019 and was, somewhat confusingly, officially titled the Initial Phase; for clarity, we refer to it as the ‘Initial Phase (Phase 2)’.

The CRC Scheme was introduced using enabling powers from the Climate Change Act 2008, Pt 3 and the primary details of...

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Web page updated on 21/05/2026

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