The Carbon Reduction Commitment (CRC) is a proposed mandatory cap and trade scheme in the United Kingdom that will apply to large non energy-intensive organizations in the public and private sectors. The scheme is scheduled to begin in April 2010, with a three year introductory phase. The first capped phase will begin in April 2013.

Announced in 2007’s Energy White Paper, this new mandatory emissions trading scheme has an immediate impact on businesses because charges for the scheme will be based on their energy consumption in 2008. From the beginning of 2010 all businesses consuming more than 6000 MWh of half-hourly metered electricity will be included in the CRC scheme, resulting in a requirement to purchase carbon allowances for the amount used through the 2008 qualifying year. Businesses will also be rated against all other companies within the CRC. They will receive bonuses, or will be penalised, in accordance with how they feature on a leader board.
www.defra.gov.uk/carbonreduction