The Carbon Reduction Commitment Energy Efficiency Scheme (CRC) aims to assist in achieving reductions in CO2 emissions, targeting non-intensive energy users. The deadline for initial registration has now passed. This article reviews the current status of CRC and its implementation, as well as the private equity industry's concerns about the scheme, and considers the actions private equity firms should take to prepare themselves for the second phase of the scheme, commencing on 1 April 2011.