The Carbon Accounting Regulations 2009

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations, which come into force on 31st May 2009, make provision about carbon units and carbon accounting for the purposes of Part 1 of the Climate Change Act 2008 (“the Act”).

Regulation 3 sets out the units that count as carbon units for the purposes of carbon accounting.

Regulation 4 places a duty on the Secretary of State to open a credit account in the UK registry in which carbon units that are to be credited to the net UK carbon account can be held. Once a carbon unit has been moved to the credit account it can only be taken out for the purpose of cancellation, unless the registry administrator is satisfied that certain conditions are met.

Regulation 5 provides a power to credit carbon units to the net UK carbon account. Under this regulation, carbon units may be transferred to the credit account by any person but are only credited to the net UK carbon account if a Minister of the Crown makes a declaration to that effect. There are limits on the circumstances in which a declaration can be made.

Regulation 6 sets out the circumstances in which carbon units are to be credited to and debited from the net UK carbon account during the 2008–2012 budgetary period as a result of the operation of the European Union Emissions Trading Scheme.

Regulation 7 makes provision for carbon units to be debited from the net UK carbon account during the 2008–2012 budgetary period where carbon units have been disposed of in the course of a given year.

Regulation 8 places duties on the Secretary of State to meet the requirements of section 27(4) and (5) of the Act in respect of the 2008–2012 budgetary period. The Secretary of State is required to cancel all the units in the credit account and to cancel a further amount of units representing the difference in stringency between the carbon budget and so much of the United Kingdom’s assigned amount under the Kyoto protocol as is attributable to net UK emissions.

Regulation 9 places a duty on the Secretary of State to maintain a register containing details of the amounts of carbon units credited to and debited from the net UK carbon account and the amounts of carbon units cancelled in accordance with regulation 8.

No Impact Assessment has been prepared for this Order as no impact on the private or voluntary sectors is foreseen.