Overview

According to Nicholas Stern's report on climate change, 50% of the total CO2 emissions in the UK come from its existing buildings. This percentage is likely to increase by 140% by 2050 if nothing is done to curb the CO2 emissions by buildings by improving their energy efficiency.

The Carbon Reduction Commitment (CRC) is a mandatory auction-based emissions trading scheme for energy users which applies to both public authorities and private sector companies. It forms part of the Climate Change Act 2008, which comes into force in April 2010.

It targets energy use in buildings, rather than their construction. The CRC incorporates incentives and challenges to encourage business and the public sector to reduce energy use by taking steps to become more energy efficient.

From April 2010 the CRC Organisations have to disclose their total electricity consumption per half hour to the Government.

From April 2011, those of the CRC Organisations that meet the conditions will have to purchase allowances to emit CO2 every scheme year (April to March of every year).

For more, click 'View Briefing'.