The Carbon Accounting Scheme (Scotland) Regulations 2010

Citation and commencement

1.  These Regulations may be cited as the Carbon Accounting Scheme (Scotland) Regulations 2010 and come into force on the day after the day they are made.

Interpretation

2.  In these Regulations—

“2009 Regulations” means the Carbon Accounting Regulations 2009(1);

“cancellation” of a carbon unit means the crediting of the unit in the national cancellation account in the UK registry, and a unit so credited is “cancelled”;

“EU ETS” means the European Union Emissions Trading Scheme established under Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC(2);

“Kyoto Protocol” means the Kyoto Protocol to the UNFCCC signed at Kyoto on 11th December 1997(3);

“Registries Regulation” means Commission Regulation (EC) No 2216/2004 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council(4);

“registry administrator” means the body appointed by the competent authority as the registry administrator(5) for the UK registry for the purposes of the Registries Regulation;

“UNFCCC” means the United Nations Framework Convention on Climate Change signed at New York on 9th May 1992(6); and

“UK registry” means the registry established for the United Kingdom in accordance with the Registries Regulation.

References to community instruments

3.  References in these Regulations to Community instruments are references to those instruments as amended from time to time.

Carbon units

4.—(1) A carbon unit for the purposes of the Climate Change (Scotland) Act 2009 is a unit of the following kind:—

(a) assigned amount unit;

(b) European Union allowance;

(c) certified emission reduction; and

(d) emission reduction unit.

(2) A carbon unit has a value of 1 tonne of carbon dioxide equivalent.

(3) In this regulation—

“assigned amount unit” means a unit issued—

(a)

under Article 7(3) of Decision No 280/2004/EC(7) of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol; or

(b)

by a party to the Kyoto Protocol which is not subject to that Decision;

“European Union allowance” means an assigned amount unit converted into an allowance for the purposes of the EU ETS in accordance with Article 45 of the Registries Regulation;

“certified emission reduction ” means a unit issued under Article 12 of the Kyoto Protocol and the Decisions adopted under the UNFCCC or the Kyoto Protocol; and

“emission reduction unit” means a unit issued under Article 6 of the Kyoto Protocol and the Decisions adopted under the UNFCCC or the Kyoto Protocol.

Carbon accounting scheme

5.—(1) The Scottish Ministers must on or before 1st August 2010 instruct the registry administrator to open an account (“the Scottish credit account”) in the UK registry.

(2) The Scottish credit account—

(a) must be used to hold a carbon unit that is to be credited to the net Scottish emissions account; and

(b) may be used to hold any other carbon unit.

(3) The Scottish Ministers may only instruct the registry administrator to transfer a carbon unit from the Scottish credit account—

(a) for cancellation; or

(b) to the credit account opened in accordance with regulation 4 of the 2009 Regulations.

(4) The Scottish Ministers may only instruct a transfer under paragraph 3(b) if they are satisfied that the carbon unit will be credited to the net UK carbon account in accordance with regulation 5 of the 2009 Regulations.

Carbon units transferred

6.—(1) A carbon unit transferred in accordance with regulation 5(3)(b) in respect of which—

(a) a declaration is made in accordance with regulation 5(2)(b) of the 2009 Regulations, may be treated by the Scottish Ministers as credited to the net Scottish emissions account; or

(b) no such declaration is made, is to be dealt with in accordance with paragraph (2).

(2) Where this paragraph applies, the Scottish Ministers must instruct the registry administrator to transfer the carbon unit to the Scottish credit account.

Crediting of carbon units to the net Scottish emissions account

7.—(1) A carbon unit is credited to the net Scottish emissions account if—

(a) a person transfers the carbon unit to the Scottish credit account; and

(b) the Scottish Ministers declare that the carbon unit is credited to the net Scottish emissions account.

(2) A declaration under paragraph (1)(b)—

(a) must state the year in respect of which the carbon unit is to be credited; and

(b) may be made in such manner and at such time as the Scottish Ministers consider appropriate.

(3) The Scottish Ministers must not make a declaration under paragraph (1)(b) if they reasonably believe that the carbon unit has been used to offset greenhouse gas emissions which are not Scottish emissions.

(4) A carbon unit which is credited to the net Scottish emissions account in accordance with this regulation must have been cancelled.

Crediting and debiting of carbon units to the net Scottish emissions account in connection with the EU ETS

8.—(1) The Scottish Ministers shall in respect of each year in the period 2010–2012 calculate whether any carbon unit is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS.

(2) Calculations under this regulation must be performed—

(a) for 2010 by 31st May 2011;

(b) for 2011 by 31st May 2012; and

(c) for 2012 by 31st May 2013.

(3) In order to calculate whether carbon units are to be credited or debited for a year, the Scottish Ministers must determine whether the total amount of carbon units surrendered in respect of Scotland as a result of the operation of the EU ETS in the relevant period for that year is more or less than the specified amount.

(4) If the amount of carbon units surrendered in a year is more than the specified amount, then an amount of carbon units equal to the difference is to be credited to the net Scottish emissions account for that year.

(5) If the amount of carbon units surrendered in a year is less than the specified amount, then an amount of carbon units equal to the difference is to be debited from the net Scottish emissions account for that year.

(6) In this regulation—

“relevant period” means—

(a)

for 2010, the 16 months preceding 1st May 2011;

(b)

for 2011, the 16 months preceding 1st May 2012; and

(c)

for 2012, the 16 months preceding 1st May 2013; and

“the specified amount” means—

(a)

23,025,000 for 2010 and 2011; and

(b)

24,659,000 for 2012.

Register of transactions

9.—(1) The Scottish Ministers must maintain a register containing information about the carbon units credited to and debited from the net Scottish emissions account under these Regulations.

(2) In relation to carbon units credited under regulation 7, or treated as so credited under regulation 6, the register must contain details of the—

(a) type of units transferred to the Scottish credit account;

(b) date of transfer to the Scottish credit account;

(c) date of any declaration that units are to be credited;

(d) year in respect of which the units are credited; and

(e) date of cancellation.

(3) In relation to carbon units to be credited or debited under regulation 8, the register must contain details of the—

(a) date on which the calculation under regulation 8(1) was performed;

(b) date of surrender;

(c) figures used in that calculation;

(d) amount of units credited to or debited from the net Scottish emissions account; and

(e) year in respect of which units are credited or debited.

Delegation of functions

10.  The Scottish Ministers may delegate to SEPA the performance of any function conferred on them by these Regulations.

STEWART STEVENSON

Authorised to sign by the Scottish Ministers

St Andrew’s House,

Edinburgh

27th May 2010