The Greenhouse Gas Emissions Trading Scheme Order 2020
| Year | 2020 |
2020 No. 1265
Climate Change
The Greenhouse Gas Emissions Trading Scheme Order 2020
Made 11th November 2020
Coming into force in accordance with article 2
At the Court at Windsor Castle, the 11th day of November 2020
Present,
The Queen’s Most Excellent Majesty in Council
This Order is made in exercise of the powers conferred by sections 44, 46(3), 54 and 90(3) of, and Schedule 2 and paragraph 9 of Schedule 3 to, the Climate Change Act 20081.
In accordance with paragraph 10 of Schedule 3 to that Act, before the recommendation to Her Majesty in Council to make this Order was made—
(a) the advice of the Committee on Climate Change, including on the amount of the limit referred to in section 48(2) of that Act, was obtained and taken into account; and
(b) such persons likely to be affected by the Order as the Secretary of State, the Scottish Ministers, the Welsh Ministers and the Department of Agriculture, Environment and Rural Affairs considered appropriate were consulted.
In accordance with paragraph 11 of that Schedule, a draft of the instrument containing this Order was laid before Parliament, the Northern Ireland Assembly, the Scottish Parliament and Senedd Cymru and approved by resolution of each House of Parliament, the Northern Ireland Assembly, the Scottish Parliament and Senedd Cymru.
Accordingly, Her Majesty, by and with the advice of Her Privy Council, makes the following Order:
PART 1
Preliminary
Citation
1. This Order may be cited as the Greenhouse Gas Emissions Trading Scheme Order 2020.
Commencement
2.—(1) Except as provided by paragraph (2), this Order comes into force on the day after the day on which it is made.
(2) Article 25, Schedule 5 and paragraph 4 of Schedule 8 come into force—
(a)
(a) on the day after the day on which this Order is made; or
(b)
(b) immediately after IP completion day,
whichever is later.
Extent
3. This Order extends to the whole of the United Kingdom.
Interpretation
4.—(1) In this Order—
“2021-2025 allocation period” means the 2021, 2022, 2023, 2024 and 2025 scheme years;
“2026-2030 allocation period” means the 2026, 2027, 2028, 2029 and 2030 scheme years;
“aerodrome” means a defined area (including any buildings, installations and equipment) on land or water or on a fixed, fixed offshore or floating structure to be used either wholly or in part for the arrival, departure and surface movement of aircraft;
“aircraft operator” has the meaning given in article 6;
“allocation period” means—
(a) the 2021-2025 allocation period; or
(b) the 2026-2030 allocation period;
“allowance” means an allowance created under this Order (see article 18);
“aviation activity” means an activity set out in paragraph 1 of Schedule 1;
“aviation emissions” means emissions of carbon dioxide arising from an aviation activity;
“carbon price”, in relation to a scheme year, has the meaning given in article 46;
“CCA 2008” means the Climate Change Act 2008;
“the Chicago Convention” means the Convention on International Civil Aviation which was, on 7th December 1944, signed on behalf of the Government of the United Kingdom at the International Civil Aviation Conference held at Chicago2;
“chief inspector” means the chief inspector constituted under regulation 8(3) of the Pollution Prevention and Control (Industrial Emissions) Regulations (Northern Ireland) 20133;
“commercial air transport operator” means a person that, for remuneration, provides scheduled or non-scheduled air transport services to the public for the carriage of passengers, freight or mail and holds an air operator certificate (AOC) or equivalent document as required by Part I of Annex 6 to the Chicago Convention;
“Directive” means Directive 2003/87/ECof the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Union and amending Council Directive 96/61/EC4;
“emission factor” has the same meaning as in the Monitoring and Reporting Regulation 2018;
“emissions monitoring plan” has the meaning given in article 28(1);
“EU ETS” means the system for greenhouse gas emission allowance trading established by the Directive;
“Eurocontrol” has the meaning given in section 24 of the Civil Aviation Act 19825;
“excluded flights” means flights set out in paragraph 2 of Schedule 1;
“flight” means one flight sector that is a flight or one of a series of flights which commences at a parking place of the aircraft and terminates at a parking place of the aircraft;
“full-scope flights” means flights departing from, or arriving in, an aerodrome situated in the United Kingdom, Gibraltar or an EEA state, other than excluded flights;
“GGETSR 2012” means the Greenhouse Gas Emissions Trading Scheme Regulations 20126;
“GGETSR emissions plan” means an emissions plan as defined in regulation 20 of the GGETSR 2012;
“greenhouse gas emissions permit” means a greenhouse gas emissions permit—
(a) issued under paragraph 3 or 9 of Schedule 6; or
(b) converted under paragraph 24 or 26 of Schedule 7 or paragraph 1(4) of Schedule 11;
“hospital and small emitter list for 2021-2025” has the meaning given in paragraph 3(2) of Schedule 7;
“hospital and small emitter list for 2026-2030” has the meaning given in paragraph 5(4)(b) of Schedule 7;
“hospital or small emitter” must be construed in accordance with paragraphs 3 and 4 of Schedule 7;
“hospital or small emitter permit” means a hospital or small emitter permit—
(a) issued under paragraph 9 of Schedule 7; or
(b) converted under paragraph 10 of Schedule 7 or paragraph 1(3) of Schedule 11;
“installation” must be construed in accordance with Schedule 2;
“monitoring and reporting conditions” means—
(a) in relation to a greenhouse gas emissions permit, the conditions referred to in paragraph 4(2) of Schedule 6;
(b) in relation to a hospital or small emitter permit, the conditions referred to in paragraph 11(2) of Schedule 7;
“Monitoring and Reporting Regulation 2012” means Commission Regulation (EU) No. 601/2012of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/ECof the European Parliament and of the Council7;
“Monitoring and Reporting Regulation 2018” means Commission Implementing Regulation (EU) 2018/2066of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/ECof the European Parliament and of the Council8as given effect subject to modifications by article 24;
“non-commercial air transport operator” means a person who operates flights and is not a commercial air transport operator;
“NRW” means the Natural Resources Body for Wales9;
“operator”, in relation to an installation, has the meaning given in article 5;
“outermost region” means—
(a) the Canary Islands;
(b) French Guiana;
(c) Guadeloupe;
(d) Mayotte;
(e) Martinique;
(f) Réunion;
(g) Saint-Martin;
(h) the Azores; or
(i) Madeira;
“permit” means—
(a) a greenhouse gas emissions permit; or
(b) a hospital or small emitter permit,
and a reference to a permit includes the monitoring plan (see paragraph 4(1)(f) of Schedule 6 and paragraph 11(1)(g) of Schedule 7);
“regulated activity” has the meaning given in paragraph 3(1) of Schedule 2;
“regulator” must be construed in accordance with articles 9 to 13;
“relevant Northern Ireland electricity generator” means an installation within the meaning of GGETSR 2012 to which those Regulations continue to apply to regulate the carrying out of regulated activities at the installation on or after 1st January 2021;
“reportable emissions”, in relation to an installation, means the total specified emissions (in tonnes of carbon dioxide equivalent10) from the regulated activities carried out at the installation;
“scheme year” means the calendar year beginning on 1st January 2021 or any of the 9 subsequent calendar years; and a reference to a scheme year described by a calendar year (for example, the “2021 scheme year”) is a reference to the scheme year beginning on 1st January of that year;
“SEPA” means the Scottish Environment Protection Agency11;
“specified emissions” has the meaning given in paragraph 3(7) of Schedule 2;
“surrender”, in relation to an allowance, means use the allowance to account for reportable emissions or aviation emissions in a particular scheme year in such a way that the allowance ceases to be available for any other purpose;
“surrender condition” has the meaning given in paragraph 4(3) of Schedule 6;
“trading period” means the period beginning on 1st January 2021 and ending on 31st December 2030;
“UK coastal waters” has the meaning given in section 89(2) of CCA 2008;
“UK ETS” has the meaning given in article 16(1);
“UK ETS authority” has the meaning given in article 14;
“UK sector of the continental shelf” has the meaning given in section 89(2) of CCA 2008;
“ultra-small emitter” must be construed in accordance with paragraph 2 of Schedule 8;
“ultra-small emitter list for 2021-2025” has the meaning given in paragraph 2(2) of Schedule 8;
“ultra-small emitter list for 2026-2030” has the meaning given in paragraph 3(5) of Schedule 8;
“Verification Regulation 2012” means Commission Regulation (EU) No 600/2012of 21 June 2012 on the verification of greenhouse gas emission reports and tonne-kilometre reports and the accreditation of verifiers pursuant to Directive 2003/87/ECof the European Parliament and of the Council12;
“Verification Regulation 2018” means Commission Implementing Regulation (EU) 2018/2067of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/ECof the European Parliament and of the Council13.
(2) For the purposes of this Order, the amount of an installation’s reportable emissions (including reportable emissions within the meaning of GGETSR 2012) from biomass must be treated as zero where the emission factor of the biomass under the Monitoring and Reporting...
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