The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020
| Year | 2020 |
2020 No. 1557
Climate Change
The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020
Made 16th December 2020
Laid before Parliament 17th December 2020
Coming into force in accordance with article 2
At the Court at Windsor Castle, the 16th day of December 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 Department of Agriculture, Environment and Rural Affairs, the Scottish Ministers, the Welsh Ministers considered appropriate were consulted.
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 (Amendment) Order 2020.
Commencement
2.—(1) Except as provided by paragraph (2), this Order comes into force on 31st December 2020.
(2) The following provisions come into force on IP completion day—
(a)
(a) article 46 and Schedule 1 (Free Allocation Regulation amended);
(b)
(b) article 47 and Schedule 2 (Activity Level Changes Regulation amended).
Extent
3. This Order extends to the whole of the United Kingdom.
PART 2
Greenhouse Gas Emissions Trading Scheme Order 2020 amended
Greenhouse Gas Emissions Trading Scheme Order 2020 amended
4. The Greenhouse Gas Emissions Trading Scheme Order 20202is amended in accordance with this Part.
Article 4 amended (interpretation)
5.—(1) Article 4 is amended as follows.
(2) In paragraph (1)—
(a)
(a) after the definition of “2026-2030 allocation period” insert—
““account” means account in the registry;
“Activity Level Changes Regulation” means Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019, as it forms part of domestic law;”;
(b)
(b) after the definition of “aircraft operator” insert—
““aircraft operator holding account” means an aircraft operator holding account opened under paragraph 13(3) of Schedule 5A;”;
(c)
(c) after the definition of “allocation period” insert—
““allocation table” means an allocation table for the 2021-2025 allocation period or the 2026-2030 allocation period referred to in article 34A;”;
(d)
(d) after the definition of “aviation activity” insert—
““aviation allocation table” means the aviation allocation table for the 2021-2025 allocation period referred to in article 34N;”;
(e)
(e) after the definition of “CCA 2008” insert—
““central account” has the meaning given in paragraph 9(2) of Schedule 5A;”;
(f)
(f) after the definition of “excluded flights” insert—
““FA installation”, “FA installation for the 2021-2025 allocation period” and “FA installation for the 2026-2030 allocation period” must be construed in accordance with article 4A;”;
(g)
(g) after the definition of “flight” insert—
““free allocation” means the allocation of allowances free of charge under Part 4A;
“free allocation conditions” means the conditions referred to in paragraph 4(6) of Schedule 6;
“Free Allocation Regulation” means Commission Delegated Regulation (EU) 2019/331 of 19 December 2018, as it forms part of domestic law;”;
(h)
(h) in the definition of “Monitoring and Reporting Regulation 2018” after “of the Council” insert “(disregarding any amendments adopted after 11th November 2020) and, except in article 24 and Schedule 4, it means that Regulation”;
(i)
(i) after the definition of “operator” insert—
““operator holding account” means an operator holding account for an installation opened under paragraph 11(4) or 12(3) of Schedule 5A;”;
(j)
(j) in the definition of “permit” after “Schedule 7)” insert “and, in the case of a greenhouse gas emissions permit, any monitoring methodology plan (see paragraph 4(1)(hb) and (7) of Schedule 6)”;
(k)
(k) after the definition of “permit” insert—
““registry” has the meaning given in paragraph 5(1) of Schedule 5A;
“registry administrator” has the meaning given in article 8A;”;
(l)
(l) in the definition of “surrender” for “in such a way that the allowance ceases to be available for any other purpose” substitute “in accordance with article 27 or 34”;
(m)
(m) in the definition of “Verification Regulation 2018” after “of the Council” insert “(disregarding any amendments adopted after 11th November 2020) and, except in article 25 and Schedule 5, it means that Regulation as given effect subject to modifications by article 25”;
(n)
(n) after the definition of “Verification Regulation 2018” insert—
““verification report” has the same meaning as in the Verification Regulation 2018.”.
Article 4A inserted
6. After article 4 insert—
“Meaning of FA installation, etc.
1. For the purposes of this Order, an installation is an “FA installation” if the installation is—
(a) an FA installation for the 2021-2025 allocation period; or
(b) an FA installation for the 2026-2030 allocation period.
2. For the purposes of this Order, an installation is an FA installation for the 2021-2025 allocation period from—
(a) the date of publication of the allocation table for the 2021-2025 allocation period (including an updated allocation table) that first includes an entry for the installation; or
(b) if earlier, the date on which the regulator gives notice of the final annual amount of allowances to be allocated in respect of the installation for any scheme year in the 2021-2025 allocation period under—
article 34H(7) (installations: errors in applications for free allocation, etc.);
Article 18a(9) of the Free Allocation Regulation (new entrants);
Article 25(9) of that Regulation (mergers and splits).
3. An installation ceases to be an FA installation for the 2021-2025 allocation period at the earliest of—
(a) the end of the 2025 scheme year;
(b) if the operator of the installation gives a renunciation notice under Article 24 of the Free Allocation Regulation in respect of the installation as a whole, the end of the scheme year in which the renunciation notice is given;
(c) the date on which, following the partial transfer under paragraph 9 of Schedule 6 of the greenhouse gas emissions permit of an installation that is an FA installation, the regulator gives notice to the transferring operator (within the meaning of that paragraph) under Article 25(9)(b) of the Free Allocation Regulation that the installation is not an FA installation for the 2021-2025 allocation period;
(d) if the installation’s permit is surrendered under paragraph 11(1) of Schedule 6 or revoked under paragraph 12(1) of that Schedule, the end of the scheme year in which the installation ceases operation;
(e) if the installation’s permit is surrendered under paragraph 11(2) of Schedule 6 or revoked under paragraph 12(3) of that Schedule, the end of the scheme year in which the surrender or revocation takes effect;
(f) the date on which, following the inclusion of an entry for the installation in the allocation table for the 2021-2025 allocation period in error, the regulator gives notice to the operator under article 34H(7)(c) that the installation is not an FA installation for the 2021-2025 allocation period.
4. For the purposes of this Order, an installation is an FA installation for the 2026-2030 allocation period from—
(a) the date of publication of the allocation table for the 2026-2030 allocation period (including an updated allocation table) that first includes an entry for the installation; or
(b) if earlier, the date on which the regulator gives notice of the final annual amount of allowances to be allocated in respect of the installation for any scheme year in the 2026-2030 allocation period under—
article 34H(7) (installations: errors in applications for free allocation, etc.);
Article 18a(9) of the Free Allocation Regulation (new entrants);
Article 25(9) of that Regulation (mergers and splits).
5. An installation ceases to be an FA installation for the 2026-2030 allocation period at the earliest of—
(a) the end of the 2030 scheme year;
(b) if the operator of the installation gives a renunciation notice under Article 24 of the Free Allocation Regulation on or after 1st January 2025 in respect of the installation as a whole, the end of the scheme year in which the renunciation notice is given;
(c) the date on which, following the partial transfer under paragraph 9 of Schedule 6 of the greenhouse gas emissions permit of an installation that is a FA installation, the regulator gives notice to the transferring operator (within the meaning of that paragraph) under Article 25(9)(b) of the Free Allocation Regulation that the installation is not an FA installation for the 2026-2030 allocation period;
(d) if the installation’s permit is surrendered under paragraph 11(1) of Schedule 6 or revoked under paragraph 12(1) of that Schedule, the end of the scheme year in which the installation ceases operation;
(e) if the installation’s permit is surrendered under paragraph 11(2) of Schedule 6 or revoked under paragraph 12(3) of that Schedule, the end of the scheme year in which the surrender or revocation takes effect;
(f) the date on which, following the inclusion of an entry for the installation in the allocation table for the 2026-2030 allocation period in error, the regulator gives notice to the operator under article 34H(7)(c) that the installation is not an FA installation for the 2026-2030...
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