The Greenhouse Gas Emissions Trading Scheme Order 2020

1. Introductory Text

2. PART 1 Preliminary

   1. 1. Citation

   2. 2. Commencement

   3. 3. Extent

   4. 4. Interpretation

   5. 4A. Meaning of FA installation, etc.

   6. 5. Meaning of operator

   7. 6. Meaning of aircraft operator

   8. 7. Exempt commercial air transport operators

   9. 8. Exempt non-commercial air transport operators

   10. 8A. Meaning of registry administrator

   11. 9. Meaning of regulator

   12. 10. Meaning of regulator: installations

   13. 11. Meaning of regulator: aircraft operators

   14. 12. Aircraft operator: change in regulator

   15. 13. Aircraft operator: change in registered office

   16. 14. Meaning of UK ETS authority, etc.

   17. 15. Applications, notices, etc.

3. PART 2 Basic elements of the UK ETS

   1. CHAPTER 1 Establishment of the UK ETS and requirement for review

      1. 16. UK Emissions Trading Scheme

      2. 17. Review of UK ETS

   2. CHAPTER 2 Allowances and caps

      1. 18. Allowances

      2. 19. Cap for trading period

      3. 20. Cap for scheme years

      4. 21. Cap: hospital and small emitter reduction factors

      5. 22. Cap: base for scheme years

      6. 23. Trading in allowances

   3. CHAPTER 3 Monitoring, reporting and verification

      1. 24. Monitoring and reporting of emissions

      2. 25. Verification of data and accreditation of verifiers

   4. CHAPTER 4 Registry

      1. 25A. Registry

4. PART 3 Installations

   1. 26. Installations: requirement for permit to carry out regulated activity

   2. 27. Installations: requirement to surrender allowances

   3. 27A. Installations: information to be submitted before 2026-2030 allocation period where no application for free allocation, etc. is made

5. PART 4 Aviation

   1. 28. Application for emissions monitoring plans

   2. 29. Issue of emissions monitoring plans

   3. 30. Refusal of application for emissions monitoring plans

   4. 31. Variation of emissions monitoring plans

   5. 32. Monitoring emissions and emissions monitoring plan conditions

   6. 33. Reporting aviation emissions

   7. 34. Surrender of allowances by aircraft operators

6. PART 4A Free Allocation

   1. CHAPTER 1 Installations

      1. 34A. Allocation tables

      2. 34B. Allocation tables: supplementary

      3. 34C. Allocation tables: updates

      4. 34D. Allocation tables: publication, etc.

      5. 34E. Allocation of allowances

      6. 34F. No allocation unless monitoring methodology plan approved

      7. 34G. New entrants' reserve

      8. 34H. Installations: errors in applications for free allocation, etc.

      9. 34HA. Free allocation for former hospital or small emitters and ultra-small emitters

   2. CHAPTER 2 Aviation

      1. 34I. Interpretation

      2. 34J. Meaning of historical aviation activity level and attributable

      3. 34K. Aviation: entitlement to free allocation in 2021-2025 allocation period

      4. 34L. Application for aviation free allocation entitlement

      5. 34M. Processing of applications and calculation of aviation free allocation entitlement

      6. 34N. Aviation allocation table for 2021-2025 allocation period

      7. 34O. Aviation: allocation of allowances for 2021-2025 allocation period

      8. 34P. Permanent cessation of aviation activity

      9. 34Q. Transfers of aviation free allocation entitlement

      10. 34R. Errors in aviation allocation table

   3. CHAPTER 3 Common provisions

      1. 34S. Return of allowances: installations

      2. 34T. Return of allowances: aviation

      3. 34U. Return of allowances: notice to registry administrator

      4. 34V. Return of allowances: notice to operator, etc.

      5. 34W. Notice to withhold allowances

7. PART 5 Charging

   1. 35. Charges

   2. 36. Charging scheme: regulators

   3. 36A. Charging scheme: registry administrator

   4. 37. Remittance of charges

8. PART 6 Monitoring compliance

   1. 38. Authorised persons

   2. 39. Inspections

   3. 40. Powers of entry, etc.

   4. 41. Warrants

   5. 42. Admissible evidence

   6. 43. Legal professional privilege

9. PART 7 Enforcement

   1. CHAPTER 1 Enforcement notices and determination of emissions by regulator

      1. 44. Enforcement notices

      2. 45. Determination of reportable emissions or aviation emissions by regulator

   2. CHAPTER 2 Civil penalties

      1. 46. Carbon price

      2. 47. Penalty notices

      3. 48. Penalty notices: supplementary

      4. 49. Regulator must publish names of persons subject to civil penalty under article 52

      5. 50. Installations: carrying out regulated activity without permit contrary to article 26

      6. 51. Installations: failure to comply with conditions of permit, etc.

      7. 52. Failure to surrender allowances

      8. 53. Installations: failure to transfer or surrender allowances where underreporting discovered after transfer

      9. 54. Hospitals and small emitters: exceeding emissions target

      10. 55. Hospitals and small emitters: failure to pay civil penalty for exceeding emissions target

      11. 56. Hospitals and small emitters: under-reporting of emissions

      12. 57. Hospitals and small emitters: failure to notify when ceasing to meet criteria

      13. 58. Installations: failure to apply to surrender permit

      14. 59. Ultra-small emitters: reportable emissions exceeding maximum amount

      15. 60. Ultra-small emitters: failure to notify where reportable emissions exceed maximum amount

      16. 61. Aviation: failure to apply or make revised application for emissions monitoring plan

      17. 62. Aviation: failure to comply with condition of emissions monitoring plan

      18. 63. Aviation: failure to monitor aviation emissions

      19. 64. Aviation: failure to report aviation emissions

      20. 64A. Failure to comply with notice to return allowances

      21. 65. Failure to comply with enforcement notice notice ...

      22. 66. Failure to comply with information notice

      23. 67. Providing false or misleading information, etc.

      24. 68. Inspection: refusal to allow access to premises

10. PART 8 Appeals

    1. 69. Interpretation

    2. 70. Right of appeal

    3. 71. Appeal body

    4. 72. Effect of appeals

    5. 73. Determination of appeals

    6. 74. Procedure for appeals

11. PART 9 Miscellaneous

    1. 75. Information notices

    2. 75A. National authority may require regulator, etc. to provide information

    3. 75B. Restriction on disclosing information

    4. 75BA. Power to publish UK ETS information

    5. 75C. National security

    6. 76. Crown application

    7. 77. Transitional provisions

12. Signature

13. 1. SCHEDULE 1

       Aviation activity

       1. 1. Aviation activity

       2. 2. Excluded flights

    2. SCHEDULE 2

       Meaning of installation and regulated activity

       1. 1. Interpretation

       2. 2. Meaning of installation

       3. 3. Meaning of regulated activity, etc.

    3. SCHEDULE 3

       Applications, notices, etc.

       1. PART 1 Applications, notices, etc. submitted to regulators

          1. 1. Submission of applications, notices, etc. to regulators

          2. 2. Determination of applications by regulators

       2. PART 2 Notices, etc. given by regulators, national authorities , UK ETS authority or registry administrator

          1. 3. Service of notices, etc.

          2. 4. Service on certain Crown operators

    4. SCHEDULE 4

       Modifications to Monitoring and Reporting Regulation 2018

       1. 1. The Monitoring and Reporting Regulation 2018 is to be read...

       2. 2. Article 1 is to be read as if for the...

       3. 3. Article 2 is to be read as if for the...

       4. 4. Article 3 is to be read as if—

       5. 5. Article 4 is to be read as if for “under...

       6. 6. Article 5 is to be read as if for the...

       7. 7. Article 9 is to be read as if for “Article...

       8. 8. Article 12 is to be read as if—

       9. 9. Article 13 is to be read as if—

       10. 10. Article 14(1) is to be read as if “in accordance...

       11. 11. Article 15 is to be read as if—

       12. 12. Article 16(1) is to be read as if for the...

       13. 13. Article 18 is to be read as if—

       14. 14. Article 19(3) is to be read as if—

       15. 15. Article 20 is to be read as if—

       16. 16. Article 26(3) is to be read as if after “source streams”...

       17. 17. Article 31(1)(b) is to be read as if for “Member...

       18. 18. Article 38 is to be read as if—

       19. 19. Article 39 is to be read as if—

       20. 20. Article 42(1) is to be read as if, in the...

       21. 20A. Article 43(4)(c) is to be read as if for “Commission”...

       22. 21. Article 47(1) is to be read as if for “Annex...

       23. 22. Article 48(2) is to be read as if—

       24. 23. Article 49 is to be read as if—

       25. 24. Article 50 is to be read as if—

       26. 25. Article 51 is to be read as if—

       27. 26. Article 53 is to be read as if—

       28. 27. Article 54 is to be read as if for the...

       29. 28. Article 55(2) is to be read as if for “Commission”...

       30. 29. Article 58(1) is to be read as if the second...

       31. 30. Article 68 is to be read as if for the...

       32. 31. Article 71 is to be read as if—

       33. 31A. Article 72(1) is to be read as if for the...

       34. 32. Article 72(3) is to be read as if “calculating the...

       35. 33. Article 73 is to be read as if—

       36. 34. Article 78 is to be read as if the words...

       37. 35. Annex 1 is to be read as if—

       38. 36. Annex 2 is to be read as if—

       39. 37. Annex 3 is to be read as if section 1...

       40. 38. Annex 4 is to be read as if—

       41. 38A. Annex 5 is to be read as if in Table...

       42. 38B. (1) Annex 6 is to be read as if in...

       43. 39. Section 2(7) of Annex 9 is to be read as...

       44. 40. Annex 10 is to be read as if—

    5. SCHEDULE 5

       Modifications to Verification Regulation 2018

       1. 1. The Verification Regulation 2018 is to be read as if—...

       2. 2. Article 1 is to be read as if—

       3. 3. Article 2 is to be read as if for “2019,...

       4. 4. Article 3 is to be read as if—

       5. 5. Article 4 is to be read as if—

       6. 6. Article 5 is to be read as if for “bodies”...

       7. 7. Article 6 is to be read as if for “or...

       8. 8. Article 7 is to be read as if—

       9. 9. Article 10(1) is to be read as if—

       10. 10. Article 11(4) is to be read as if—

       11. 11. Article 13(1)(c) is to be read as if for “or...

       12. 12. Article 16(2) is to be read as if—

       13. 13. Article 17 is to be read as if—

       14. 14. Article 18 is to be read as if for paragraph...

       15. 15. Article 21 is to be read as if—

       16. 16. Article 22 is to be read as if—

       17. 17. Article 23(4) is to be read as if in the...

       18. 18. Article 27 is to be read as if—

       19. 19. Article 28 is to be read as if point (e)...

       20. 20. Article 29 is to be read as if after paragraph...

       21. 21. Article 30(1)(e) is to be read as if for “and...

       22. 22. Article 31 is to be read as if—

       23. 23. Article 32 is to be read as if—

       24. 24. The Verification Regulation 2018 is to be read as if...

       25. 25. Article 36 is to be read as if—

       26. 26. Article 37 is to be read as if—

       27. 27. Article 38 is to be read as if—

       28. 28. Article 39(2) is to be read as if for “an...

       29. 29. Article 40 is to be read as if for “EU”...

       30. 30. Article 41 is to be read as if “harmonised” were...

       31. 31. Article 42 is to be read as if “harmonised” were...

       32. 32. Article 43 is to be read as if—

       33. 33. Article 45 is to be read as if, in the...

       34. 34. Article 46(1) is to be read as if—

       35. 35. Article 47 is to be read as if—

       36. 36. Article 48 is to be read as if in each...

       37. 37. Article 49 is to be read as if—

       38. 38. Article 50 is to be read as if—

       39. 39. Article 51(2) is to be read as if “harmonised” were...

       40. 40. Article 52(2) is to be read as if “harmonised” were...

       41. 41. Article 54(4) is to be read as if for “Member...

       42. 42. Article 55 is to be read as if—

       43. 43. Article 57(4) is to be read as if “harmonised” were...

       44. 44. Article 59(1) is to be read as if—

       45. 45. Article 60(2)(a) is to be read as if for the...

       46. 46. Article 63(2) is to be read as if for “harmonised...

       47. 47. Article 69 is to be read as if—

       48. 48. Article 70 is to be read as if—

       49. 49. Article 71 is to be read as if—

       50. 50. Article 72 is to be read as if—

       51. 51. Article 73(1) is to be read as if—

       52. 52. Article 76 is to be read as if—

       53. 53. Article 77(1)(b) is to be read as if for “or...

       54. 54. Annex 1 is to be read as if—

       55. 55. Annex 2 is to be read as if for the...

       56. 56. Annex 3 is to be read as if for “the...

    6. SCHEDULE 5A

       Registry

       1. PART 1 Preliminary

          1. 1. Interpretation

          2. 2. Submission of applications, etc. to registry administrator

          3. 3. Account holders: fit and proper person

          4. 4. Authorised representatives: fit and proper person

       2. PART 2 Establishment and operation of registry

          1. 5. Registry

          2. 6. Operation of registry

          3. 6A. Reportable emissions and aviation emissions to be recorded in registry

          4. 7. Suspension of registry due to security concerns

          5. 8. Suspension of registry for technical reasons

          6. 8A. Exemption from liability

       3. PART 3 Accounts

          1. CHAPTER 1 Opening accounts

             1. 9. Central accounts

             2. 10. Auction delivery account

             3. 11. Operator holding accounts

             4. 12. Transfer of operator holding accounts

             5. 13. Aircraft operator holding accounts

             6. 14. Trading accounts

          2. CHAPTER 2 Account representatives

             1. 15. Primary contacts and alternative primary contacts

             2. 16. Appointment of authorised representatives

             3. 17. Change in account permission of authorised representatives

             4. 18. Suspension of access to registry of authorised representatives

             5. 19. Removal of authorised representatives

          3. CHAPTER 3 Transfers of allowances

             1. 20. Transfers between accounts

             2. 21. Transfer cancellations

             3. 22. Transfer reversals

             4. 23. Deletion of allowances

             5. 24. Surrender of allowances

          4. CHAPTER 4 Suspension and closure of accounts

             1. 25. Suspension of accounts

             2. 26. Closure of central accounts and auction delivery account

             3. 27. Closure of operator holding accounts

             4. 28. Closure of aircraft operator holding accounts

             5. 29. Closure of trading accounts

             6. 30. Balance in accounts to be closed

       4. PART 4 Publication of information from registry

          1. 31. Information about accounts: operator and aircraft operator holding accounts and trading accounts

          2. 32. Information about accounts: operator holding accounts

          3. 33. Information about accounts: aircraft operator holding accounts

          4. 34. Information about transfers of allowances

    7. SCHEDULE 6

       Permits

       1. PART 1 Application for greenhouse gas emissions permits

          1. 1. Greenhouse gas emissions permits: application

          2. 2. Greenhouse gas emissions permits: content of application

          3. 3. Greenhouse gas emissions permits: issue of permit

          4. 4. Greenhouse gas emissions permits: content of permit

          5. 5. Greenhouse gas emissions permits: effect of permit, etc.

       2. PART 2 Greenhouse gas emissions permits and hospital or small emitter permits

          1. 6. Variation of permits

          2. 7. Transfer of permits: application

          3. 8. Transfer of permits: contents of application

          4. 9. Transfer of permits: grant of application

          5. 10. Transfer of permits: underreporting discovered after transfer

          6. 11. Surrender of permits

          7. 12. Revocation of permits

    8. SCHEDULE 7

       Hospitals and small emitters

       1. PART 1 Preliminary

          1. 1. Interpretation

          2. 2. Meaning of installation that primarily provides services to a hospital in scheme year

       2. PART 2 Hospital or small emitter status

          1. 3. Hospital or small emitter status

          2. 4. Hospital or small emitter status: former ultra-small emitters

          3. 5. Obtaining hospital or small emitter status for 2026-2030 allocation period

          4. 6. Obtaining hospital or small emitter status for 2026-2030 allocation period: Conditions A, B and C

       3. PART 3 Hospital or small emitter permits

          1. 7. Hospital or small emitter permits: application

          2. 8. Hospital or small emitter permits: content of application

          3. 9. Hospital or small emitter permits: issue of permit

          4. 10. Hospital or small emitter permits: conversion of existing greenhouse gas emissions permit for 2026-2030 allocation period

          5. 11. Hospital or small emitter permits: content of permit

          6. 12. Hospital or small emitter permits: effect of permit, etc.

          7. 13. Hospitals and small emitters: modifications to Monitoring and Reporting Regulation 2018

          8. 14. Former ultra-small emitters: hospital or small emitter permits coming into force after beginning of scheme year

       4. PART 4 Emissions targets

          1. 15. Emissions targets other than for hospital-qualifying installations may not exceed maximum amount

          2. 16. Emissions targets for 2021-2025 allocation period

          3. 17. Emissions targets for 2026-2030 allocation period

          4. 18. Emissions targets: calculation of later targets where initial targets based on estimates

          5. 19. Emissions targets: hospital or small emitters must not exceed targets

          6. 19A. Capacity increases: application to increase emissions targets

          7. 19B. Capacity increases: content of application

          8. 19C. Capacity increases: grant of application

          9. 19D. Capacity increases: net change in installed capacity at installation since reference date

          10. 19E. Capacity increases: increase in emissions targets for scheme years

          11. 19F. Capacity increases: combined capacity utilisation factor

          12. 19G. Capacity increases: interpretation

          13. 20. Emissions targets: banking overachieved target

          14. 21. Emissions targets: targets for 2026-2030 allocation period for hospital or small emitters in 2021-2025 allocation period

          15. 22. Emissions targets: errors

          16. 22A. Publication of emissions targets and reportable emissions

       5. PART 5 End of hospital or small emitter status

          1. 23. End of hospital or small emitter status: ceasing to meet criteria

          2. 23A. End of hospital or small emitter status: voluntary exit of status for 2024 and 2025 scheme years

          3. 24. Conversion notices

          4. 25. End of hospital or small emitter status: ceasing to meet criteria: publication

          5. 26. End of hospital or small emitter status: end of allocation period

    9. SCHEDULE 8

       Ultra-small emitters

       1. 1. Interpretation

       2. 2. Ultra-small emitter status

       3. 3. Obtaining ultra-small emitter status for 2026-2030 allocation period

       4. 4. Obtaining ultra-small emitter status for 2026-2030 allocation period: modifications to Verification Regulation 2018 for ultra-small emitters in 2021-2025 allocation period

       5. 5. Duty to monitor reportable emissions, etc.

       6. 6. Reportable emissions must not exceed maximum amount

       7. 7. End of ultra-small emitter status: ceasing to meet criteria

       8. 8. End of ultra-small emitter status: publication

    10. SCHEDULE 8A

        Free allocation for former hospital or small emitters and ultra-small emitters

        1. 1. Interpretation

        2. 2. Application

        3. 3. Monitoring methodology plan to be submitted for approval , etc.

        4. 4. Calculation and approval of final allocation

        5. 5. Modifications to Activity Level Changes Regulation

    11. SCHEDULE 9

        Appeals to Scottish Land Court

        1. 1. (1) A person who wishes to appeal to the Scottish...

        2. 2. (1) Subject to sub-paragraph (2), the appropriate form must be...

        3. 3. (1) The Scottish Land Court may determine an appeal, or...

        4. 4. (1) The respondent must, within 16 days of receipt of...

    12. SCHEDULE 10

        Appeals to Planning Appeals Commission (Northern Ireland)

        1. 1. (1) A person who wishes to appeal to the Planning...

        2. 2. A notice of appeal under paragraph 1 must be given...

        3. 3. (1) An appellant may withdraw an appeal by giving notice...

        4. 4. (1) The Planning Appeals Commission must determine the appeal; and...

    13. SCHEDULE 11

        Transitional provisions: installations

        1. 1. Permits under GGETSR 2012

        2. 2. Applications for permits, etc. under GGETSR 2012

        3. 3. Schedule does not apply to permits for relevant Northern Ireland electricity generators, etc.

14. Explanatory Note