The CRC Energy Efficiency Scheme is a new regulatory incentive designed to improve both public and private sector energy consumption in the UK. The scheme is mandatory and intends to encourage improved energy efficiency in organisations and therefore reduce overall CO₂ output.
Participating organisations are required to purchase allowances for each tonne of CO₂ they emit, providing a direct incentive for organisations to reduce their emissions and subsequently reduce the allowances purchased. Therefore, improvements in energy efficiency have two key benefits: Reduction in the amount of 'allowances' to be bought and a reduction in overall energy expenditure throughout the year.
In addition, the government will produce a publically available 'league table' of all organisations within the scheme. This details the comparative performance of participants and essentially acts as a 'name-and-shame' for poorly performing organisations.