The carbon reduction commitment emissions trading scheme will target of emissions that are not currently included in the European Union's emissions trading scheme all climate change agreements. It is anticipated that the trading scheme will affect approximately 5000 of the UK's largest organisations.
During the initial phase of the carbon reduction commitments emissions trading scheme, starting 2010, all allowances will be sold at a fixed price of £12 per tonne of CO2. However, it is anticipated that from 2013, all allowances will be allocated through auctions that will develop a market price. Over time, the number of available credits will diminish which is likely to drive up the price.