Carbon Reduction Commitment and co-investment structures


The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) is now well under way but confusion still reigns over the application of many areas of the scheme, not least as to who, if anyone, should be responsible for funds, trusts and other structures.

The CRC rules were not written to take account of the complexities of real estate and other investment structures. Fund and trust structures have to be shoe-horned into the CRC rules which, at times, produces some perverse results. It is clear that practice on assessment of investment structures is not uniform. Also, the rules are going to change on how trusts are treated in Phase 2.

This briefing highlights how the CRC rules apply in certain situations and explains the changes expected in Phase 2 (starting on 1 April 2013) to the treatment of trusts…

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