The European Commission (Commission) has given their support to a scheme proposed by the UK to help reduce carbon dioxide (CO2) emissions. Under the Carbon Reduction Commitment (CRC) scheme, UK companies will be given incentives for changing their polluting behaviour. The CRC will apply only to non-energy intensive sectors that are not covered by the EU Emissions Trading System. Carbon allowances will be sold at ‘auctions’; the companies environmental performances will then be ranked in a league table. Auction revenue will be paid back to those companies at the top of the league table, who have produced the least CO2 emissions. The Commission approved the scheme under Article 87(3) EC Treaty in light of its incentive effect, major environmental benefits and limited distortion of competition