The final details of the Government's scheme to save organisations money on fuel bills and to reduce carbon emissions have been unveiled by the Department of Energy and Climate Change.

The Carbon Reduction Commitment Energy Efficiency Scheme is a new regulatory incentive to improve energy efficiency in large public and private sector organisations. Large energy users in business and the public sector will be required to take part in the scheme from 1st April 2010.

Following extensive consultation with businesses and trade bodies, the DECC has made some improvements to the scheme:

• To smooth the introduction of the scheme and to help ease the upfront costs, organisations will only have to report emissions in the first year (2010/11). In subsequent years organisations will have to buy allowances corresponding to their emissions from energy use, and then surrender them by the end of the year
• In the second year (2011/12) extra weighting will be given to organisations which take action early to improve energy efficiency
• Recognition will be given to organisations which use onsite renewable energy like wind turbines or solar panels by publishing the increased carbon savings from such measures
• Organisations will be given greater flexibility in how they participate. Subsidiaries who are large enough to qualify in own right (at least 6000MWh) may opt to do so separately from their organisational group
• Given the primary focus of the scheme is energy efficiency, the CRC will now be known as CRC Energy Efficiency Scheme

Energy and Climate Change Minister Joan Ruddock said: "The UK is leading the way in tackling climate change and in the move to a low carbon economy. Organisations and the public sector must play a central role including all government departments, regardless of size.


"Large organisations have huge potential to achieve cost-effective energy efficiency savings. There are clear benefits from positive, immediate action to tackle climate change. Investment that takes place in the next few decades will have a profound effect on the climate in the second half of this century and in the next.

"The CRC Energy Efficiency Scheme will help organisations to become more energy efficient, to save significant sums of money on fuel bills, and to show customers, clients and competitors that their organisation is a leader in tackling climate change."

(CD/BMcC)