How does the CRC Scheme work? The CRC Energy Efficiency Scheme will operate over seven-year cycles, but the initial introductory cycle runs for three years from April 2010 and consists of four key phases:

1. Qualification Period (2008)
   The period for which organisations must assess whether or not they qualify to make an information disclosure or participate fully in the CRC Energy Efficiency Scheme.
2. Registration Period (April - Sept. 2010)
   The period for which organisations that are required to take action under the scheme must either submit their information disclosure or register as a participant with the administrator.
3. Footprint Year (April 2010 – March 2011)
   Participants must monitor their total emissions from energy supplies and determine what emissions must be included in the CRC Energy Efficiency Scheme. This is the first compliance year of each phase. This data must be reported to the administrator in a footprint report.
4. Compliance Years (2010 - 2013)
   Run from April to March like financial years during which participants must take some action to comply with the CRC Energy Efficiency Scheme. There are 3 compliance years in this first introductory cycle then 7 compliance years in all subsequent cycles.

The introductory cycle's qualification period has already expired. In order to get the scheme up and running, the other three phases of the CRC Energy Efficiency Scheme will run concurrently. The Registration period requires all firms mandatorily affected to register with the scheme, outlining their total energy usage across the company (not just the electricity usage through half-hourly meters, but emissions dealt with under the Climate Change Agreements and the EU Emissions Trading Scheme are exempt).

The Footprint year requires monitoring of emissions which will be used as a baseline for following years, whilst Compliance years require the purchase of carbon allowances to cover emissions sufficiently. They are bought on a yearly basis in advance based on projected emissions, and then unused CRC credits can be traded on the secondary market.

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