The Greenhouse Gas Emissions Trading Scheme (Withdrawal Agreement) (EU Exit) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations implement Article 96(2) of the agreement between the United Kingdom and the EU under Article 50(2) of the Treaty on European Union (which sets out the arrangements for the United Kingdom’s withdrawal from the EU) (“the withdrawal agreement”), and Article 9 of the Protocol on Ireland/Northern Ireland in the withdrawal agreement (“the Protocol”). They relate to the EU greenhouse gas emissions trading system established pursuant to Directive 2003/87/EC (listed in Annex 4 to the Protocol) implemented in the UK by the Greenhouse Gas Emissions Trading Scheme Regulations 2012 (“the 2012 Regulations”).

Part 2 provides for the continued membership of the EU emissions trading system for generators of electricity for the wholesale market in Ireland/Northern Ireland, by limiting the ongoing application of the 2012 Regulations to that electricity generation. It amends the 2012 Regulations and other provisions which would otherwise amend those Regulations, as appropriate.

Part 3 provides for the ongoing application, with modifications, of the 2012 Regulations in relation to the emissions of greenhouse gases on or before 31st December 2020 and has the effect that operators must comply with the obligations in the 2012 Regulations in relation to emissions in the scheme year ending on that date. Regulation 46 ensures that the 2012 Regulations continue to apply in so far as they relate to the Finance Act 2019, and to the UK Registry, which is the registry that the UK uses to fulfil certain obligations relating to the Kyoto Protocol. Separate instruments will make provision for the control of greenhouse gas emissions and the ending of the rights and obligations contained in the 2012 Regulations after 2020.

A full impact assessment has not been produced for this instrument as no substantial impact on the private or voluntary sector is foreseen.