The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022
| Jurisdiction | UK Non-devolved |
2022 No. 1173
Climate Change
The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022
Made 9th November 2022
Laid before Parliament 16th November 2022
Coming into force 1st January 2023
At the Court at Buckingham Palace, the 9th day of November 2022
Present,
The King’s Most Excellent Majesty in Council
This Order is made in exercise of the powers conferred by sections 44, 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 His Majesty in Council to make this Order was made—
(a) the advice of the Committee on Climate Change 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 and the Welsh Ministers considered appropriate were consulted.
Accordingly, His Majesty, by and with the advice of His Privy Council, makes the following Order:
PART 1
Preliminary
Citation
1. This Order may be cited as the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022.
Commencement
2. This Order comes into force on 1st January 2023.
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 20 amended (cap for scheme years)
5.—(1) Article 20 is amended as follows.
(2) In paragraph (2) after “Finance Act 2020” insert3“or for the creation of up to 40,984,970 allowances in the trading period for the purpose of free allocation in respect of installations3”.
Article 34H amended (installations: errors in applications for free allocation, etc.)
6.—(1) Article 34H is amended as follows.
(2) In paragraph (2)(b) for “activity level report” substitute “activity level or other report”.
Article 34W amended (notice to withhold allowances)
7.—(1) Article 34W is amended as follows.
(2) After paragraph (1)(g) insert—
“
(ga)
(ga) in relation to allowances that would otherwise have been allocated in respect of the installation for the 2023 scheme year, if the operator of the installation has made an application under Article 5a of the Activity Level Changes Regulation4that has not been determined or has been granted an extension of time to make such an application that has not expired;
(3) In paragraph (2) for “paragraph (1)(a) to (g)” substitute “paragraph (1)(a) to (ga)”.
Article 45 amended (determination of reportable emissions or aviation emissions by regulator)
8.—(1) Article 45 is amended as follows.
(2) Omit paragraph (3)(a).
(3) Omit paragraph (4).
Article 57 amended (hospitals and small emitters: failure to notify when ceasing to meet criteria)
9.—(1) Article 57 is amended as follows.
(2) In paragraph (4) in the definition of “RE” for “paragraph 13(4)(a)” substitute “paragraph 13(4)(a)(i)”.
Article 75B amended (restriction on disclosing information)
10.—(1) Article 75B is amended as follows.
(2) After paragraph (3)(d) insert—
“
(e)
(e) in the case of a disclosure by the UK ETS authority, if the disclosure is permitted under article 75BA (power to publish UK ETS information).
Article 75BA inserted
11. After article 75B insert—
“
Power to publish UK ETS information
75BA.—(1) The UK ETS authority may publish information held or obtained under UK ETS legislation—
(a)
(a) to ensure the effective operation of the UK ETS;
(b)
(b) to inform the public about the operation of the UK ETS.
(2) But the UK ETS authority may not publish information under paragraph (1) that the UK ETS authority considers may be commercially sensitive unless the UK ETS authority considers that the publication of the information is proportionate to what is sought to be achieved by it.
(3) In this article, “UK ETS legislation” has the meaning given in article 75B(4).
Article 75C amended (national security)
12.—(1) Article 75C is amended as follows.
(2) In paragraph (1) after “(aviation allocation table)” insert “, paragraph 31 of Schedule 5A (information about accounts) or paragraph 22A of Schedule 7 (publication of emissions targets and reportable emissions)”.
Schedule 4 amended (modifications to Monitoring and Reporting Regulation 2018)
13.—(1) Schedule 4 is amended as follows.
(2) Paragraph 18 amended (Article 38)
In paragraph 18—
(a)
(a) in sub-paragraph (a) in the inserted text after “but” insert “, subject to paragraph 2a,”;
(b)
(b) after sub-paragraph (a) insert—
“
(aa)
(aa) after paragraph 2 there were inserted—
(2a) The emission factor for category 1 tallow or category 2 tallow may be treated as zero where the tallow concerned is used to produce heat that is used at the operator’s installation (including heat used to generate electricity at the installation, but only if the electricity is used at the installation).
In this paragraph:
(a)
(a) “category 1 tallow” means tallow that is category 1 material under Article 8 of Regulation (EC) No 1069/2009of the European Parliament and of the Council of 21 October 2009 laying down health rules as regards animal by-products and derived products not intended for human consumption5;
(b)
(b) “category 2 tallow” means tallow that is category 2 material under Article 9 of that Regulation;
(3) Paragraph 19 amended (Article 39)
For paragraph 19(b) substitute—
“
(b)
(b) paragraph 3 were omitted.
(4) Paragraph 27 amended (Article 54)
In paragraph 27 in the substituted Article 54—
(a)
(a) in paragraph 4 omit “referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007”;
(b)
(b) in paragraph 5 for “those criteria” substitute “the sustainability criteria”;
(c)
(c) after paragraph 5 insert—
“
6. In this Article, “sustainability criteria”, in relation to biofuel, means the sustainability criteria (within the meaning of the Renewable Transport Fuel Obligations Order 20076) that applied for the purposes of that Order on the date of purchase of the biofuel.
(5) Paragraph 35 amended (Annex 1)
In paragraph 35—
(a)
(a) for sub-paragraph (a) substitute—
“
(a)
(a) in section 1—
(i) in point (1)(a)—
(aa) in the opening words “a description of the installation and activities carried out by the installation to be monitored, containing” were omitted;
(bb) in point (i) for “description” there were substituted “list”;
(cc) in point (ii) “describing the installation or” were omitted;
(ii) in point (2)(b) for “andde minimis” in both places it occurs there were substituted de minimis“, de minimis and marginal”;
”;
(b)
(b) in sub-paragraph (c)(ii) in the inserted point (f) for “referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007” substitute “(as defined in Article 54(6))”.
(6) Paragraphs 38A and 38B inserted (Annexes 5 and 6)
After paragraph 38 insert—
“
38A. Annex 5 is to be read as if in Table 1 in the eighth row (scrubbing (urea))—
(a) in the entry in the column headed “net calorific value” for “1” there were substituted “n.a.”;
(b) in the entry in the column headed “oxidation factor” for “1” there were substituted “n.a.”;
(c) in the entry in the column headed “conversion factor” for “n.a.” there were substituted “1”.
38B.—(1) Annex 6 is to be read as if in section 3 for Table 6 there were substituted—
Gas |
Global warming potential |
N2O |
265 t CO2(e)/t N2O |
CF4 |
6 630 t CO2(e)/t CF4 |
C2F6 |
11 100 t CO2(e)/t C2F6 |
(2) The modifications made by sub-paragraph (1) have effect in relation to the 2023 and subsequent scheme years.
(7) Paragraph 40 amended (Annex 10)
In paragraph 40(c)(iiia) in the substituted point (12)(a) for “referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007” substitute “(as defined in Article 54(6))”.
Schedule 5 amended (modifications to Verification Regulation 2018)
14.—(1) Schedule 5 is amended as follows.
(2) Paragraph 4 amended (Article 3)
In paragraph 4—
(a)
(a) in sub-paragraph (b)(ii) in the substituted text for “EN ISO 14065:2013” substitute “the standard referred to in Annex 2”;
(b)
(b) in sub-paragraph (c) before paragraph (i) insert—
“
(ai)
(ai) “or another legal entity” were omitted;
(3) Paragraph 5 amended (Article 4)
In paragraph 5(a) in the substituted text for “EN ISO 14065:2013” substitute “the standard referred to in Annex 2”.
(4) Paragraph 24 amended (Articles 34a and 34b)
In paragraph 24—
(a)
(a) in the inserted Article 34a—
(i) in the heading after “Virtual site visits” insert “by verifiers of installations”;
(ii) in the first subparagraph omit “or aircraft operator” each time it occurs;
(iii) in the second subparagraph omit “or the aircraft operator”;
(iv) in the third subparagraph omit “or aircraft operator”;
(b)
(b) after the inserted Article 34a insert—
“
Virtual site visits by verifiers of aircraft operators
Article 34b.—(1) For the purpose of verifying the report of an aircraft operator (other than a small emitter referred to in Article 55(1) of Implementing Regulation (EU) 2018/2066), the verifier...
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