Under the Kyoto Protocol, European Union member states agreed to reduce emissions of greenhouse gases - such as CO₂ - by 8 per cent below 1990 levels by 2012. The second phase of the Kyoto protocol requires a 20% reduction by 2020. The UK has agreed to go further than this, and aims to reduce its emissions by 34 per cent below 1990 levels. The UK is also obliged to cap its overall greenhouse gas emissions across all industries under the Climate Change Act 2008.

The UK's CRC Energy Efficiency Scheme is an incentive to improve energy efficiency in large public and private sector organisations. The scheme is regulated by:

• In Northern Ireland: The Northern Ireland Environment Agency (NIEA)
• In Scotland: The Scottish Environment Protection Agency (SEPA).

The Environment Agency is the overall scheme administrator and will manage the online registry and the sale of carbon allowances for the whole of the UK.

Provision has been made that will bring about the early closure of the CRC Energy Efficiency Scheme. This guide has been updated to explain what the implications will mean for you.