The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is a mandatory UK-wide scheme to reduce carbon emissions from large commercial and public sector organisations. It includes supermarkets, hotel chains, banks, engineering firms, airports, drinks manufacturers, the mining industry, government departments and local authorities.
Over 2000 participating organisations must account for emissions from energy sources used to heat, light and power their respective estates. The scheme started in 2010 and is administered for the UK by the Environment Agency. In Scotland, SEPA regulates the participants.
The scheme requires participants to record and report the emissions associated with their energy consumption. Participants must also purchase a corresponding number of "allowances" equivalent to every tonne of CO2 calculated. The performance of each participating organisation is published in the autumn each year by the Environment Agency.
The Scottish Ministers are participating in the scheme. Their annual emissions are approximately 70,000 tonnes of CO2. This is equivalent to a cost of about £1.2m and allowances are currently priced at around £17 each.