5000 UK companies are now subject to compulsory participation in the CRC Energy Efficiency Scheme, a programme which is designed to force businesses to reduce their carbon emissions or pay financial penalties. On April 1st this year, the process of monitoring emissions and trading in carbon allowances began.

Participating businesses will be issued with allowances, which will reduce each year. If an organization fails to reduce its emissions sufficiently to operate within its allowance, it will be required to purchase further allowances, initially at a cost of £12 per tonne of carbon. An organization which manages to reduce its emissions below its allowance will be able to sell spare allowances and gain revenue.

The scheme is intended to drive organizations to implement energy saving technologies, such as LED lighting.