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. 5. Meaning of operator

   6. 6. Meaning of aircraft operator

   7. 7. Exempt commercial air transport operators

   8. 8. Exempt non-commercial air transport operators

   9. 9. Meaning of regulator

   10. 10. Meaning of regulator: installations

   11. 11. Meaning of regulator: aircraft operators

   12. 12. Aircraft operator: change in regulator

   13. 13. Aircraft operator: change in registered office

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

   15. 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. PART 3 Installations

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

   2. 27. Installations: requirement to surrender allowances

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 5 Charging

   1. 35. Charges

   2. 36. Approval, publication and revision of charges

   3. 37. Remittance of charges

7. 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

8. 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. 65. Failure to comply with enforcement notice given by regulator

      21. 66. Failure to comply with information notice

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

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

9. 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

10. PART 9 Miscellaneous

    1. 75. Information notices

    2. 76. Crown application

    3. 77. Transitional provisions

11. Signature

12. 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 or UK ETS authority

          1. 3. Service of notices, etc.

          2. 4. Service on certain Crown operators

    4. SCHEDULE 4

       Modifications to Commission Regulation (EU) 2018/2066

       1. 1. Commission Implementing Regulation (EU) 2018/2066 is to be read as...

       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 paragraph 3...

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

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

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

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

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

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

       27. 27. Article 54 is to be read as if—

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

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

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

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

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

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

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

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

       36. 36. Annex 2 is to be read as if, before section...

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

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

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

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

    5. SCHEDULE 5

       Amendments to the Verification Regulation 2018

       1. 1. The Verification Regulation 2018 is amended as follows.

       2. 2. For “competent authority” in each place it occurs substitute “...

       3. 3. In Article 1, for “2012 Regulations” substitute “ 2020 Order...

       4. 4. In Article 2, for the words from “2019” to the...

       5. 5. In Article 3— (a) for the words before point (A1),...

       6. 6. Omit Article 3a.

       7. 7. In Article 5, for “bodies” substitute “ body ”.

       8. 8. In Article 7— (a) in paragraph 3, for “competent authorities”...

       9. 9. In Article 10(1)(a), omit “greenhouse gas emissions”.

       10. 10. In Article 17(4) for “and the CO2” substitute “ or...

       11. 11. In Article 27(3)(g), for “activity, other than aviation, listed in...

       12. 12. In Article 31— (a) in paragraph 1, for “a” in...

       13. 13. In Article 36— (a) in paragraphs 2(b) and 6, for...

       14. 14. In Article 37— (a) in paragraph 2, for “an” substitute...

       15. 15. In Article 38— (a) for “EU ETS” in each place...

       16. 16. In Article 39(2), for “an EU” substitute “ a UK...

       17. 17. In Article 40, for “EU” in each place it occurs...

       18. 18. In Article 43(1), at the end insert “ or under...

       19. 19. In Article 45, in the words before point (a), for...

       20. 20. In Article 47(1), for “each” substitute “ the ”.

       21. 21. In Article 59(1)(b), for “Directive 2003/87/EC” substitute “ the 2020...

       22. 22. In Article 60(2)(a), for “Directive 2003/87/EC” substitute “ the 2020...

       23. 23. In Article 69— (a) in paragraph 1, omit “in accordance...

       24. 24. In Article 70— (a) in paragraph 1—

       25. 25. In Article 71— (a) in paragraph 1, in the words...

       26. 26. In Article 76(1)— (a) for “National accreditation bodies, or where...

    6. 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

    7. 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. 20. Emissions targets: banking overachieved target

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

          8. 22. Emissions targets: errors

       5. PART 5 End of hospital or small emitter status

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

          2. 24. Conversion notices

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

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

    8. 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

    9. 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 regulator must, within 16 days of receipt of...

    10. 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...

    11. 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.

13. Explanatory Note