Press Release: State aid: Commission endorses UK Carbon Reduction Commitment scheme

On 14 July, 2009, the European Commission authorised under EC Treaty state aid rules a scheme proposed by the United Kingdom introducing a trading system for CO2 emissions related to energy consumption. The national system, called 'the Carbon Reduction Commitment' (CRC), applies to non energy intensive sectors not covered by the EU Emission Trading system. All allowances in the CRC system would be sold by auction. Participants’ environmental performance would be ranked in a performance league table, and the auction revenue would be paid back to participants as a subsidy. Participants ranked on the top of the Performance League Table would benefit the most from the recycling mechanism. The measures were in line with the Article 87(3)c of the EC Treaty because they pursue an objective of common interest in a necessary and proportionate way.