The Climate Change (Limit on Use of Carbon Units) (Scotland) Order 2016

EXPLANATORY NOTE

(This note is not part of the Order)

For the purposes of Part 1 of the Climate Change (Scotland) Act 2009, this Order sets a limit of zero on the net amount of carbon units that may be credited to net Scottish emissions accounts during the period 2018-2022.

It also provides that carbon units credited to or debited from the net Scottish emissions account as a result of the operation of the European Union emission trading scheme (“the EU ETS”) in accordance with the Carbon Accounting Scheme (Scotland) Regulations 2010 do not count towards that zero limit. The EU ETS (including the associated use of carbon units) operates by—

• limiting, or encouraging the limitation of, activities that consist of the emission of greenhouse gases or that cause or contribute to such emissions, or

• encouraging activities that consist of, or cause or contribute to, reductions in greenhouse gas emissions or removal of greenhouse gases from the atmosphere.

No business and regulatory impact assessment has been prepared for this Order as no impact on business, charities or voluntary bodies is foreseen.