The Vehicle Emissions Trading Schemes Order 2023

1. Introductory Text

2. Part 1 Introductory provisions

   1. 1. Citation and commencement

   2. 2. Extent

   3. 3. Interpretation

3. Part 2 Establishment and general provision in relation to the Trading Schemes

   1. 4. Establishment of the Trading Schemes

   2. 5. Period by reference to which the Trading Schemes operate

   3. 6. Administration of the Trading Schemes

   4. 7. Allowances and credits: general

   5. 8. Pool participants in the Trading Schemes: general

4. Part 3 The Trading Schemes

   1. Chapter 1 The Non-Zero-Emission Car Registration Trading Scheme (CRTS)

      1. 9. Interpretation of Chapter 1

      2. 10. Activity to which the CRTS applies and unit of measurement of activity

      3. 11. Participants in the CRTS

      4. 12. CRTS allowances and limits on CRTS allowances and CRTS activity

      5. 13. Allocation of CRTS allowances

      6. 14. Banking CRTS allowances

      7. 15. Borrowing CRTS allowances

      8. 16. Banked allowances: pool CRTS participants

      9. 17. Borrowed allowances: pool CRTS participants

      10. 18. CRTS credits: general

      11. 19. CRTS credits: registration of ZE SPVs (CRTS participants)

      12. 20. CRTS credits: car clubs (CRTS participants)

      13. 21. CRTS credits: registration of ZE SPVs (SPV car manufacturers)

      14. 22. CRTS credits: car clubs (SPV car manufacturers)

      15. 23. CRTS credits: conversion of unused CCTS allowances

      16. 23A. CRTS credits: conversion of unused VRTS allowances by a CRTS participant which is also a VRTS participant

      17. 23B. CRTS credits: conversion of VRTS credits by a CRTS participant which is also an SPV van manufacturer

      18. 24. Measuring activity in the CRTS

      19. 25. Trading CRTS allowances and credits: CRTS participants

      20. 25A. Trading CRTS allowances with VRTS participants

      21. 26. Trading CRTS credits with CRTS participants: SPV car manufacturers

      22. 26A. Trading CRTS credits with VRTS participants: SPV car manufacturers

      23. 27. Accounting for activity in the CRTS

      24. 28. Payments: CRTS

      25. 29. Banked or borrowed CRTS allowances of former CRTS participants

      26. 30. Expiry of CRTS allowances and CRTS credits

   2. Chapter 2 The Non-Zero-Emission Car CO2 Trading Scheme (CCTS)

      1. 31. Activity to which the CCTS applies and unit of measurement of activity

      2. 32. Participants in the CCTS

      3. 33. CCTS allowances

      4. 34. Allocation of CCTS allowances

      5. 35. Conversion of unused CRTS allowances into CCTS allowances

      6. 36. Measuring activity in the CCTS

      7. 37. Trading CCTS allowances

      8. 38. Accounting for activity in the CCTS

      9. 39. Payments: CCTS

      10. 40. Expiry of CCTS allowances

   3. Chapter 3 The Non-Zero-Emission Van Registration Trading Scheme (VRTS)

      1. 41. Interpretation of Chapter 3

      2. 42. Activity to which the VRTS applies and unit of measurement of activity

      3. 43. Participants in the VRTS

      4. 44. VRTS allowances and limits on VRTS allowances and VRTS activity

      5. 45. Allocation of VRTS allowances

      6. 46. Banking VRTS allowances

      7. 47. Borrowing VRTS allowances

      8. 48. Banked allowances: pool VRTS participants

      9. 49. Borrowed allowances: pool VRTS participants

      10. 50. VRTS credits: general

      11. 51. VRTS credits: registration of ZE SPVs (VRTS participants)

      12. 52. VRTS credits: car clubs (VRTS participants)

      13. 53. VRTS credits: registration of ZE SPVs (SPV van manufacturers)

      14. 54. VRTS credits: car clubs (SPV van manufacturers)

      15. 55. VRTS credits: conversion of unused VCTS allowances

      16. 55A. VRTS credits: conversion of unused CRTS allowances by a VRTS participant which is also a CRTS participant

      17. 55B. VRTS credits: conversion of CRTS credits by a VRTS participant which is also an SPV car manufacturer

      18. 56. Measuring activity in the VRTS

      19. 57. Trading VRTS allowances and credits: VRTS participants

      20. 57A. Trading VRTS allowances with CRTS participants

      21. 58. Trading VRTS credits with VRTS participants: SPV van manufacturers

      22. 58A. Trading VRTS credits with CRTS participants: SPV van manufacturers

      23. 59. Accounting for activity in the VRTS

      24. 60. Payments: VRTS

      25. 61. Banked or borrowed VRTS allowances of former VRTS participants

      26. 62. Expiry of VRTS allowances and VRTS credits

   4. Chapter 4 The Non-Zero-Emission Van CO2 Trading Scheme (VCTS)

      1. 63. Activity to which the VCTS applies and unit of measurement of activity

      2. 64. Participants in the VCTS

      3. 65. VCTS allowances

      4. 66. Allocation of VCTS allowances

      5. 67. Conversion of unused VRTS allowances into VCTS allowances

      6. 68. Measuring activity in the VCTS

      7. 69. Trading VCTS allowances

      8. 70. Accounting for activity in the VCTS

      9. 71. Payments: VCTS

      10. 72. Expiry of VCTS allowances

5. Part 4 Information

   1. 73. Information: participants in the Trading Schemes

   2. 74. Information: SPV manufacturers

   3. 75. Maintenance and audit of records by participants in the Trading Schemes

   4. 76. Maintenance and audit of records by SPV manufacturers

   5. 77. Preparation of provisional information

   6. 78. Error notification

   7. 79. Preparation and notification of final information

   8. 80. Publication of final information

   9. 81. Power of administrator to require information from participants and SPV manufacturers

   10. 82. Updating information provided with an application under Part 3 of Schedule 4 (low-volume participants)

   11. 83. Updating information provided with an application under Schedule 5 (pool participants)

   12. 84. Manner of provision of information to administrator

6. Part 5 Monitoring compliance and enforcement

   1. 85. Powers of administrator in respect of monitoring compliance

   2. 86. Power to require production of documents or provision of information

   3. 87. Power to question officers of a company

   4. 88. Powers of entry, etc

   5. 89. Seizure of documents or records

   6. 90. Warrant

   7. 91. Legal professional privilege

   8. 92. Enforcement notices

7. Part 6 Civil penalties

   1. 93. Civil penalties: general

   2. 94. Financial penalties: general

   3. 95. Non-financial penalties: general

   4. 96. Waiver and modification of civil penalties

   5. 97. Failure to make a payment to account for activity in the Trading Schemes

   6. 98. Failure to provide information under article 73

   7. 99. Failure to maintain records

   8. 100. Failure to provide information under article 81 (information required for the purposes of administering the Trading Schemes)

   9. 101. Failure to provide information under article 86 (information required where suspected failure to comply with this Order)

   10. 102. Failure to make officer available for questioning

   11. 103. Refusal to allow access to premises

   12. 104. Failure to comply with enforcement notice

   13. 105. Provision of false or misleading information: participants in the Trading Schemes

   14. 106. Provision of false or misleading information: SPV manufacturers

8. Part 7 Appeals

   1. 107. Decisions to which this Part applies

   2. 108. Appeal against decisions of the administrator

9. Part 8 Revocation, amendment and saving of EU Regulations relating to CO2 emission limits

   1. 109. Interpretation of Part 8

   2. 110. Partial revocation and amendment of Regulation (EU) 2019/631

   3. 111. Amendment of Regulation (EU) 725/2011 (eco-innovation for passenger cars)

   4. 112. Amendment of Regulation (EU) 427/2014 (eco-innovations for light commercial vehicles)

   5. 113. Partial revocation and amendment of Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 (monitoring and reporting of data on vehicle registration)

   6. 114. Partial revocation and amendment of Regulation (EU) 63/2011 and Regulation (EU) 114/2013 (derogations)

   7. 115. Revocation of Regulation (EU) 2017/1152 and Regulation (EU) 2017/1153

   8. 116. Savings for monitoring and compliance in relation to Great Britain

10. Part 9 Miscellaneous

    1. 117. Crown application

    2. 118. Review

11. Signature

12. Schedules

    1. Schedule 1

       Baseline for the CCTS and VCTS

       1. Part 1 Baseline for the CCTS

          1. 1. Interpretation and general

          2. 2. Paragraphs 5 to 19 apply for the purposes of calculating...

          3. 3. Paragraph 20 applies for the purposes of calculating the baseline...

          4. 4. A baseline which is calculated in accordance with this Part,...

          5. 5. Existing manufacturer which met 2021 target

          6. 6. Where this paragraph applies, the CCTS participant’s baseline is the...

          7. 7. Exempt manufacturer for 2021

          8. 8. Existing manufacturer which did not meet 2021 target

          9. 9. Where this paragraph applies, the CCTS participant’s baseline is the...

          10. 10. Existing manufacturer in non-compliant pool met individual 2021 target

          11. 11. Where this paragraph applies, the CCTS participant’s baseline is the...

          12. 12. Existing manufacturer in non-compliant pool did not meet individual 2021 target

          13. 13. Where this paragraph applies, the CCTS participant’s baseline is the...

          14. 14. New manufacturer in 2022

          15. 15. Where this paragraph applies, the CCTS participant’s baseline is the...

          16. 16. New manufacturer in 2023

          17. 17. Where this paragraph applies, the CCTS participant’s baseline is the...

          18. 18. New manufacturer from 2024

          19. 19. Where this paragraph applies, the CCTS participant’s baseline is the...

          20. 20. Pool CCTS participant

       2. Part 2 Baseline for the VCTS

          1. 21. Interpretation and general

          2. 22. Paragraphs 25 to 39 apply for the purposes of calculating...

          3. 23. Paragraph 40 applies for the purposes of calculating the baseline...

          4. 24. A baseline which is calculated in accordance with this Part,...

          5. 25. Existing manufacturer which met 2021 target

          6. 26. Where this paragraph applies, the VCTS participant’s baseline is the...

          7. 27. Exempt manufacturer for 2021

          8. 28. Existing manufacturer which did not meet 2021 target

          9. 29. Where this paragraph applies, the VCTS participant’s baseline is the...

          10. 30. Existing manufacturer in non-compliant pool met individual 2021 target

          11. 31. Where this paragraph applies, the VCTS participant’s baseline is the...

          12. 32. Existing manufacturer in non-compliant pool did not meet individual 2021 target

          13. 33. Where this paragraph applies, the VCTS participant’s baseline is the...

          14. 34. New manufacturer in 2022

          15. 35. Where this paragraph applies, the VCTS participant’s baseline is the...

          16. 36. New manufacturer in 2023

          17. 37. Where this paragraph applies, the VCTS participant’s baseline is the...

          18. 38. New manufacturer from 2024

          19. 39. Where this paragraph applies, the VCTS participant’s baseline is the...

          20. 40. Pool VCTS participant

    2. Schedule 2

       Car club conditions

       1. 1. The conditions which must be met by a person (referred...

       2. 2. The operator offers a service to the public (a “car...

       3. 3. The operator ensures that the vehicles used for the purpose...

       4. 4. The operator has and publishes— (a) an equality and diversity...

       5. 5. If the operator intends to cease providing the car club...

       6. 6. The operator provides the following information to the administrator within...

    3. Schedule 3

       Determination of the specific emissions of CO2 of completed vans

       1. 1. General

       2. 2. The administrator must keep under review whether the multiplier of...

       3. 3. If, following the review in paragraph 2, the administrator finds...

       4. 4. The administrator must keep under review the representativeness of monitoring...

       5. 5. If, following the review in paragraph 4, the administrator finds...

       6. 6. Specific emissions of CO 2 of a completed van which undergoes emissions testing at the final stage

       7. 7. Specific emissions of CO 2 of a completed van based on a complete base vehicle

       8. 8. Specific emissions of CO 2 of a completed van based on an incomplete base vehicle: general

       9. 9. The monitoring emissions of CO2 of an incomplete base vehicle...

       10. 10. Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions

       11. 11. The formula in this paragraph is: DMbase = (MRObase x...

       12. 12. The mass representative of the vehicle load for the purposes...

       13. 13. Where DMbase is lower than TML, TMind is replaced by...

       14. 14. Where DMbase is higher than TMH, TMind is replaced by...

       15. 15. For a completed van which is subject to individual vehicle...

       16. 16. Monitoring emissions of CO2: modifications relating to aerodynamic drag

       17. 17. Where this paragraph applies, the manufacturer of the base vehicle...

       18. 18. Paragraph 19 applies where— (a) the interpolation method is not...

       19. 19. Where this paragraph applies, Af is replaced by the frontal...

    4. Schedule 3A

       Alternative specific emissions of CO2: OVC hybrid electric vehicles

       1. Part 1 General

          1. 1. In this Schedule— “ charge-depleting Type 1 test ” means...

       2. Part 2 Applications for alternative specific CO2 emissions

          1. 2. A CCTS participant may apply for the specific emissions of...

          2. 3. A VCTS participant may apply for the specific emissions of...

          3. 4. An application under this Schedule is valid if it—

       3. Part 3 Conditions A, B and C

          1. 5. Condition A is that the application— (a) is accompanied by—...

          2. 6. Condition B is that the application— (a) is accompanied by—...

          3. 7. Condition C is that the application— (a) is accompanied by—...

       4. Part 4 Specified information

          1. 8. The information specified in this paragraph is—

          2. 9. The information specified in this paragraph is—

       5. Part 5 Decision on the application

          1. 10. The administrator must, within the decision period—

          2. 11. The notification required by paragraph 10 must be in writing...

          3. 12. If an application under this Schedule, other than a further...

          4. 13. If an application under this Schedule is rejected as invalid, the...

          5. 14. In this Part, “ decision period ”, in relation to...

       6. Part 6 Determination of alternative specific emissions of CO2

          1. 15. Where the administrator grants an application under this Schedule in...

          2. 16. If the application met Condition A or Condition B, the...

          3. 17. If the application met Condition C, but not Condition B,...

          4. 18. For the purposes of calculating the values referred to in...

    5. Schedule 4

       Low-volume CRTS participants and low-volume VRTS participants

       1. Part 1 General

          1. 1. A CRTS participant may be treated as a low-volume CRTS...

          2. 2. For the purposes of paragraph 1(c)— (a) a participant operates...

       2. Part 2 Participants with fewer than 1,000 car or van registrations during a scheme year

          1. 3. A CRTS participant which is the manufacturer of fewer than...

          2. 4. A VRTS participant which is the manufacturer of fewer than...

       3. Part 3 Participants with 1,000 to 2,499 car or van registrations during a scheme year

          1. 5. A CRTS participant which is the manufacturer of fewer than...

          2. 6. A VRTS participant which is the manufacturer of fewer than...

          3. 7. An application under this Part may not relate to the...

          4. 8. A CRTS participant or VRTS participant which makes an application...

          5. 9. An application under this Part must be—

          6. 10. An application under this Part must be accompanied by the...

          7. 11. For a vehicle which has an individual vehicle approval certificate,...

          8. 11A. For a vehicle in relation to which an administrator has...

          9. 12. The administrator may only reject an application made under this...

          10. 13. If a valid application is made under this Part and...

          11. 14. Where an application is granted in accordance with paragraph 13,...

          12. 15. Where an application is rejected in accordance with paragraph 12(b),...

          13. 16. An applicant which ceases to be a low-volume CRTS participant...

          14. 17. An application granted under this Part may be revoked by...

          15. 18. A revocation under paragraph 17 must be notified by the...

    6. Schedule 5

       Application by two or more manufacturers to be a pool participant in the Trading Schemes

       1. 1. Two or more manufacturers may together apply to the administrator...

       2. 2. An application under this Schedule may relate to a single...

       3. 3. An application under this Schedule must be made on or...

       4. 4. An application under this Schedule may only be made by...

       5. 5. An application under this Schedule must identify—

       6. 6. For the purposes of paragraph 5(b)— (a) if an application...

       7. 7. An application under this Schedule must be accompanied by evidence...

       8. 8. The administrator may only reject an application under this Schedule...

       9. 9. Where the administrator grants an application made in accordance with...

    7. Schedule 6

       Percentage of total car or van registrations for the purpose of calculating CRTS allowances and VRTS allowances

       1. Part 1 Percentage of total car registrations for the purpose of calculating CRTS allowances

       2. Part 2 Percentage of total van registrations for the purpose of calculating VRTS allowances

    8. Schedule 7

       Information provisions

       1. Part 1 Information relating to cars and ZE SPVs of category M1

          1. 1. The information referred to in article 73(1)(a) and article 74(3)(a)...

          2. 2. The information mentioned in sub-paragraphs (t), (u) and (v) of...

          3. 3. Paragraph 4 applies in relation to a car which is...

          4. 4. For a car to which this paragraph applies, the administrator...

          5. 5. For a car which is fuelled by both petrol and...

       2. Part 2 Information relating to vans, ZE SPVs of category N1 and certain ZE SPVs of category N2

          1. 6. The information referred to in article 73(1)(b) and article 74(3)(b)...

          2. 7. The information mentioned in sub-paragraphs (u), (v) and (w) of...

          3. 8. Paragraph 9 applies in relation to a van which is...

          4. 9. For a van to which this paragraph applies, the administrator...

          5. 10. For a van which is fuelled by both petrol and...

       3. Part 3 Information relating to the base vehicle of completed vans

          1. 11. The information referred to in article 73(1)(c) is set out...

          2. 12. Where the completed van is based on an incomplete base...

          3. 13. Where the completed van is based on a complete base...

13. Explanatory Note