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The Greenhouse Gas Emissions Trading Scheme Order 2020

S.I. 2020/1265 · Made 11 November 2020 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 1 July 2026.

Climate Change

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 2008 M1.

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—

  1. (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

  2. (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:C1

Annotations to the whole text

Marginal citations

M1

2008 c. 27.

Modifications

C1

Order modified (1.1.2024) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2023 (S.I. 2023/850), arts. 2, 20(8)

Contents

  1. Part 1: Preliminary
  2. 1Citation
  3. 2Commencement
  4. 3Extent
  5. 4Interpretation
  6. 4AMeaning of FA installation, etc.
  7. 5Meaning of operator
  8. 6Meaning of aircraft operator
  9. 7Exempt commercial air transport operators
  10. 8Exempt non-commercial air transport operators
  11. 8AMeaning of registry administrator
  12. 9Meaning of regulator
  13. 10Meaning of regulator: installations
  14. 11Meaning of regulator: aircraft operators
  15. 12Aircraft operator: change in regulator
  16. 13Aircraft operator: change in registered office
  17. 13AMeaning of regulator: maritime operators
  18. 14Meaning of UK ETS authority, etc.
  19. 15Applications, notices, etc.
  20. Part 2: Basic elements of the UK ETS
  21. Chapter 1: Establishment of the UK ETS and requirement for review
  22. 16UK Emissions Trading Scheme
  23. 17Review of UK ETS
  24. Chapter 2: Allowances and caps
  25. 18Allowances
  26. 19Cap for trading period
  27. 20Cap for scheme years
  28. 21Cap: hospital and small emitter reduction factors
  29. 22Cap: base for scheme years
  30. 23Trading in allowances
  31. 23AFlexible reserve
  32. Chapter 3: Monitoring, reporting and verification
  33. 24Monitoring and reporting of emissions
  34. 25Verification of data and accreditation of verifiers
  35. Chapter 4: Registry
  36. 25ARegistry
  37. Part 3: Installations
  38. 26Installations: requirement for permit to carry out regulated activity
  39. 27Installations: requirement to surrender allowances
  40. 27AInstallations: information to be submitted on or before 30 June 2025 where no application for free allocation, etc. is made
  41. Part 4: Aviation
  42. 28Application for emissions monitoring plans
  43. 29Issue of emissions monitoring plans
  44. 30Refusal of application for emissions monitoring plans
  45. 31Variation of emissions monitoring plans
  46. 32Monitoring emissions and emissions monitoring plan conditions
  47. 33Reporting aviation emissions
  48. 34Surrender of allowances by aircraft operators
  49. Part 4ZA: Maritime
  50. 34ZAApplication of the Order to maritime
  51. Part 4A: Free Allocation
  52. Chapter 1: Installations
  53. 34AAllocation tables for 2021-2025 and 2027-2030 allocation periods
  54. 34AAAllocation table for 2026 allocation period
  55. 34BAllocation tables: supplementary
  56. 34CAllocation tables: updates
  57. 34DAllocation tables: publication, etc.
  58. 34EAllocation of allowances
  59. 34FNo allocation unless monitoring methodology plan approved
  60. 34GNew entrants' reserve
  61. 34HInstallations: errors in applications for free allocation, etc.
  62. 34HAFree allocation for former hospital or small emitters and ultra-small emitters
  63. Chapter 2: Aviation
  64. 34IInterpretation
  65. 34JMeaning of historical aviation activity level and attributable
  66. 34KAviation: entitlement to free allocation in 2021-2025 allocation period
  67. 34LApplication for aviation free allocation entitlement
  68. 34MProcessing of applications and calculation of aviation free allocation entitlement
  69. 34NAviation allocation table for 2021-2025 allocation period
  70. 34OAviation: allocation of allowances for 2021-2025 allocation period
  71. 34PPermanent cessation of aviation activity
  72. 34QTransfers of aviation free allocation entitlement
  73. 34RErrors in aviation allocation table
  74. Chapter 3: Common provisions
  75. 34SReturn of allowances: installations
  76. 34TReturn of allowances: aviation
  77. 34UReturn of allowances: notice to registry administrator
  78. 34VReturn of allowances: notice to operator, etc.
  79. 34WNotice to withhold allowances
  80. Part 5: Charging
  81. 35Charges
  82. 36Charging scheme: regulators
  83. 36ACharging scheme: registry administrator
  84. 37Remittance of charges
  85. Part 6: Monitoring compliance
  86. 38Authorised persons
  87. 39Inspections
  88. 40Powers of entry, etc.
  89. 41Warrants
  90. 42Admissible evidence
  91. 43Legal professional privilege
  92. Part 7: Enforcement
  93. Chapter 1: Enforcement notices , deficit notices and determination of emissions by regulator
  94. 44Enforcement notices
  95. 44ADeficit notices
  96. 45Determination of reportable emissions or aviation emissions by regulator
  97. 45ADetermination of maritime emissions by regulator
  98. 45BDetermination of emissions figure for surrender by regulator
  99. Chapter 2: Civil penalties
  100. 46Carbon price
  101. 47Penalty notices
  102. 48Penalty notices: supplementary
  103. 49Regulator must publish names of persons subject to civil penalty under article 52
  104. 50Installations: carrying out regulated activity without permit contrary to article 26
  105. 51Installations: failure to comply with conditions of permit, etc.
  106. 52Failure to surrender allowances
  107. 53Installations: failure to transfer or surrender allowances where underreporting discovered after transfer
  108. 54Hospitals and small emitters: exceeding emissions target
  109. 55Hospitals and small emitters: failure to pay civil penalty for exceeding emissions target
  110. 56Hospitals and small emitters: under-reporting of emissions
  111. 57Hospitals and small emitters: failure to notify when ceasing to meet criteria
  112. 58Installations: failure to apply to surrender permit
  113. 59Ultra-small emitters: reportable emissions exceeding maximum amount
  114. 60Ultra-small emitters: failure to notify where reportable emissions exceed maximum amount
  115. 60AInstallations: failure to submit information under article 27A
  116. 61Aviation: failure to apply or make revised application for emissions monitoring plan
  117. 62Aviation: failure to comply with condition of emissions monitoring plan
  118. 63Aviation: failure to monitor aviation emissions
  119. 64Aviation: failure to report aviation emissions
  120. 64AFailure to comply with notice to return allowances
  121. 64BMaritime: failure to apply or make revised application for emissions monitoring plan
  122. 64CMaritime: failure to comply with condition of emissions monitoring plan
  123. 64DMaritime: failure to monitor maritime emissions
  124. 64EMaritime operator: failure to report maritime emissions
  125. 65Failure to comply with enforcement notice ......
  126. 65AFailure to comply with deficit notice
  127. 66Failure to comply with information notice
  128. 67Providing false or misleading information, etc.
  129. 68Inspection: refusal to allow access to premises
  130. Part 8: Appeals
  131. 69Interpretation
  132. 70Right of appeal
  133. 71Appeal body
  134. 72Effect of appeals
  135. 73Determination of appeals
  136. 74Procedure for appeals
  137. Part 9: Miscellaneous
  138. 75Information notices
  139. 75ANational authority may require regulator, etc. to provide information
  140. 75BRestriction on disclosing information
  141. 75BAPower to publish UK ETS information
  142. 75CNational security
  143. 76Crown application
  144. 77Transitional provisions
  145. Signature
  146. Schedule 1: Aviation activity
  147. 1Aviation activity
  148. 2Excluded flights
  149. Schedule 2: Meaning of installation and regulated activity
  150. 1Interpretation
  151. 2Meaning of installation
  152. 3Meaning of regulated activity, etc.
  153. Schedule 2A: MARITIME
  154. Part 1: PRELIMINARY
  155. 1Introductory
  156. 2Interpretation
  157. Part 2: KEY CONCEPTS AND OBLIGATIONS
  158. 3Meaning of “maritime operator”
  159. 4Notification of change of responsibility
  160. 5Ships to which this Schedule applies
  161. 6Meaning of “port of call”
  162. 7Meaning of “maritime activity”
  163. 8Excluded activities
  164. 9Applications for emissions monitoring plans
  165. 10Issue of emissions monitoring plans
  166. 11Refusal of application for emissions monitoring plans
  167. 12Variation of emissions monitoring plans
  168. 13Monitoring of emissions and emissions monitoring plan condition
  169. 14Reporting of emissions
  170. 15Surrender of allowances by maritime operators
  171. 16Maritime monitoring and reporting principles
  172. Part 3: CONTENTS OF THE EMISSIONS MONITORING PLAN
  173. 17Paragraph 17
  174. Part 4: MONITORING ARRANGEMENTS
  175. 18Monitoring on a per-voyage basis
  176. 19Simplified monitoring for voyages
  177. 20Monitoring in-port activities
  178. 21Monitoring methods for maritime emissions
  179. 22Method A: BDN and periodic stocktakes of fuel tanks
  180. 23Method B: Bunker fuel tank monitoring on board
  181. 24Method C: Flow meters for applicable combustion processes
  182. 25Method D: Direct maritime emissions measurement
  183. 26Reporting on improvement to the monitoring methodology
  184. Part 5: DATA MANAGEMENT AND CONTROL
  185. 27Control system
  186. 28Quality assurance of relevant measurement equipment
  187. 29Internal reviews and validation of data
  188. 30Corrections and corrective action
  189. 31Control of out-sourced processes
  190. 32Effectiveness of control system
  191. 33Data gaps
  192. 34Records and documentation
  193. Part 6: CALCULATION OF MARITIME EMISSIONS
  194. 35Formulae to be used when calculating maritime emissions
  195. 36Default values for emission factors
  196. 37Emissions reduction claims
  197. Part 7: REPORTING REQUIREMENTS
  198. 38Contents of the annual emissions report
  199. Part 8: VERIFICATION AND ACCREDITATION
  200. Chapter 1: GENERAL PROVISIONS
  201. 39Introductory
  202. 40Interpretation
  203. 41General obligations for the verifiers
  204. 42Presumption of conformity
  205. Chapter 2: VERIFICATION OF ANNUAL EMISSIONS REPORTS
  206. 43Pre-contractual obligations
  207. 44Time allocation
  208. 45Information to be provided by maritime operators
  209. 46Strategic analysis
  210. 47Risk analysis to be carried out by verifiers
  211. 48Verification plan
  212. 49Verification process
  213. 50Analytical procedures
  214. 51Verification of reported data
  215. 52Verification of methods applied for missing data
  216. 53Materiality level
  217. 54Site visits
  218. 55Virtual site visits
  219. 56Addressing misstatements, non-conformities and non-compliance
  220. 57Conclusions of the verification
  221. 58Recommendations for improvement
  222. 59Verification report
  223. 60Limitation of scope
  224. 61Independent review
  225. Chapter 3: REQUIREMENTS FOR VERIFIERS
  226. 62Continued competence process
  227. 63Verification teams
  228. 64Competence requirements for UK ETS auditors and UK ETS lead auditors
  229. 65Competence requirements for independent reviewers
  230. 66Use of technical experts
  231. 67Procedures for verification activities
  232. 68Internal verification documentation
  233. 69Records and communication
  234. 70Impartiality and independence
  235. Chapter 4: ACCREDITATION OF VERIFIERS
  236. 71Accreditation of verifiers
  237. 72Scope of accreditation
  238. 73Objectives of the accreditation process
  239. 74Requests for accreditation
  240. 75Assessment
  241. 76Decision on accreditation and accreditation certificate
  242. 77Annual surveillance
  243. 78Reassessment
  244. 79Extraordinary assessment
  245. 80Administrative measures
  246. Chapter 5: REQUIREMENTS FOR THE NATIONAL ACCREDITATION BODY
  247. 81Requirements for national accreditation bodies
  248. 82Independence and impartiality
  249. 83Assessment team
  250. 84Competence requirements for assessors
  251. 85Technical experts
  252. 86Complaints
  253. 87Records and documentation
  254. 88Access to information and confidentiality
  255. Chapter 6: INFORMATION EXCHANGE
  256. 89Information exchange and focal points
  257. 90Accreditation work programme and management report
  258. 91Information exchange on administrative measures
  259. 92Information exchange by the regulator in respect of a maritime operator
  260. 93Databases of accredited verifiers
  261. 94Notification by verifiers
  262. Part 9: DETERMINATION OF VALUES FOR EMISSION FACTORS UNDER PARAGRAPH 36(4)
  263. 95Emission factors based on analyses
  264. 96Sampling plan
  265. 97Use of laboratories
  266. 98Frequencies for analyses
  267. Schedule 3: Applications, notices, etc.
  268. Part 1: Applications, notices, etc. submitted to regulators
  269. 1Submission of applications, notices, etc. to regulators
  270. 2Determination of applications by regulators
  271. Part 2: Notices, etc. given by regulators, national authorities , UK ETS authority or registry administrator
  272. 3Service of notices, etc.
  273. 4Service on certain Crown operators
  274. Schedule 4: Modifications to Monitoring and Reporting Regulation 2018
  275. 1Paragraph 1
  276. 2Paragraph 2
  277. 3Paragraph 3
  278. 4Paragraph 4
  279. 5Paragraph 5
  280. 6Paragraph 6
  281. 7Paragraph 7
  282. 8Paragraph 8
  283. 9Paragraph 9
  284. 10Paragraph 10
  285. 11Paragraph 11
  286. 12Paragraph 12
  287. 13Paragraph 13
  288. 14Paragraph 14
  289. 15Paragraph 15
  290. 16Paragraph 16
  291. 17Paragraph 17
  292. 18Paragraph 18
  293. 19Paragraph 19
  294. 20Paragraph 20
  295. 20AParagraph 20A
  296. 21Paragraph 21
  297. 22Paragraph 22
  298. 23Paragraph 23
  299. 24Paragraph 24
  300. 25Paragraph 25
  301. 26Paragraph 26
  302. 27Paragraph 27
  303. 28Paragraph 28
  304. 29Paragraph 29
  305. 30Paragraph 30
  306. 31Paragraph 31
  307. 31AParagraph 31A
  308. 32Paragraph 32
  309. 33Paragraph 33
  310. 34Paragraph 34
  311. 35Paragraph 35
  312. 36Paragraph 36
  313. 37Paragraph 37
  314. 38Paragraph 38
  315. 38AParagraph 38A
  316. 38BParagraph 38B
  317. 39Paragraph 39
  318. 40Paragraph 40
  319. Schedule 5: Modifications to Verification Regulation 2018
  320. 1Paragraph 1
  321. 2Paragraph 2
  322. 3Paragraph 3
  323. 4Paragraph 4
  324. 5Paragraph 5
  325. 6Paragraph 6
  326. 7Paragraph 7
  327. 8Paragraph 8
  328. 9Paragraph 9
  329. 10Paragraph 10
  330. 11Paragraph 11
  331. 12Paragraph 12
  332. 13Paragraph 13
  333. 14Paragraph 14
  334. 15Paragraph 15
  335. 16Paragraph 16
  336. 17Paragraph 17
  337. 18Paragraph 18
  338. 19Paragraph 19
  339. 20Paragraph 20
  340. 21Paragraph 21
  341. 22Paragraph 22
  342. 23Paragraph 23
  343. 24Paragraph 24
  344. 25Paragraph 25
  345. 26Paragraph 26
  346. 27Paragraph 27
  347. 28Paragraph 28
  348. 29Paragraph 29
  349. 30Paragraph 30
  350. 31Paragraph 31
  351. 32Paragraph 32
  352. 33Paragraph 33
  353. 34Paragraph 34
  354. 35Paragraph 35
  355. 36Paragraph 36
  356. 37Paragraph 37
  357. 38Paragraph 38
  358. 39Paragraph 39
  359. 40Paragraph 40
  360. 41Paragraph 41
  361. 42Paragraph 42
  362. 43Paragraph 43
  363. 44Paragraph 44
  364. 45Paragraph 45
  365. 46Paragraph 46
  366. 47Paragraph 47
  367. 48Paragraph 48
  368. 49Paragraph 49
  369. 50Paragraph 50
  370. 51Paragraph 51
  371. 52Paragraph 52
  372. 53Paragraph 53
  373. 54Paragraph 54
  374. 55Paragraph 55
  375. 56Paragraph 56
  376. Schedule 5A: Registry
  377. Part 1: Preliminary
  378. 1Interpretation
  379. 2Submission of applications, etc. to registry administrator
  380. 3Account holders: fit and proper person
  381. 4Authorised representatives: fit and proper person
  382. Part 2: Establishment and operation of registry
  383. 5Registry
  384. 6Operation of registry
  385. 6AReportable emissions, aviation emissions and maritime emissions to be recorded in the registry
  386. 7Suspension of registry due to security concerns
  387. 8Suspension of registry for technical reasons
  388. 8AExemption from liability
  389. Part 3: Accounts
  390. Chapter 1: Opening accounts
  391. 9Central accounts
  392. 10Auction delivery account
  393. 11Operator holding accounts
  394. 12Transfer of operator holding accounts
  395. 13Aircraft operator holding accounts
  396. 13AMaritime operator holding accounts
  397. 14Trading accounts
  398. Chapter 2: Account representatives
  399. 15Primary contacts and alternative primary contacts
  400. 16Appointment of authorised representatives
  401. 17Change in account permission of authorised representatives
  402. 18Suspension of access to registry of authorised representatives
  403. 19Removal of authorised representatives
  404. Chapter 3: Transfers of allowances
  405. 20Transfers between accounts
  406. 21Transfer cancellations
  407. 22Transfer reversals
  408. 23Deletion of allowances
  409. 24Surrender of allowances
  410. Chapter 4: Suspension and closure of accounts
  411. 25Suspension of accounts
  412. 26Closure of central accounts and auction delivery account
  413. 27Closure of operator holding accounts
  414. 28Closure of aircraft operator holding accounts
  415. 28AClosure of maritime operator holding accounts
  416. 29Closure of trading accounts
  417. 30Balance in accounts to be closed
  418. Part 4: Publication of information from registry
  419. 31Information about accounts: operator and aircraft operator holding accounts and trading accounts
  420. 32Information about accounts: operator holding accounts
  421. 33Information about accounts: aircraft operator holding accounts
  422. 33AInformation about accounts: maritime operator holding accounts
  423. 34Information about transfers of allowances
  424. Schedule 6: Permits
  425. Part 1: Application for greenhouse gas emissions permits
  426. 1Greenhouse gas emissions permits: application
  427. 2Greenhouse gas emissions permits: content of application
  428. 3Greenhouse gas emissions permits: issue of permit
  429. 4Greenhouse gas emissions permits: content of permit
  430. 5Greenhouse gas emissions permits: effect of permit, etc.
  431. Part 2: Greenhouse gas emissions permits and hospital or small emitter permits
  432. 6Variation of permits
  433. 7Transfer of permits: application
  434. 8Transfer of permits: contents of application
  435. 9Transfer of permits: grant of application
  436. 10Transfer of permits: underreporting discovered after transfer
  437. 10AInstallation to be treated as ceasing operation: regulator’s notice
  438. 11Surrender of permits
  439. 12Revocation of permits
  440. Schedule 7: Hospitals and small emitters
  441. Part 1: Preliminary
  442. 1Interpretation
  443. 2Meaning of installation that primarily provides services to a hospital in scheme year
  444. Part 2: Hospital or small emitter status
  445. 3Hospital or small emitter status
  446. 4Hospital or small emitter status: former ultra-small emitters
  447. 5Obtaining hospital or small emitter status for 2026-2030 period
  448. 6Obtaining hospital or small emitter status for 2026-2030 period: Conditions A, B and C
  449. Part 3: Hospital or small emitter permits
  450. 7Hospital or small emitter permits: application
  451. 8Hospital or small emitter permits: content of application
  452. 9Hospital or small emitter permits: issue of permit
  453. 10Hospital or small emitter permits: conversion of existing greenhouse gas emissions permit for 2026-2030 period
  454. 11Hospital or small emitter permits: content of permit
  455. 12Hospital or small emitter permits: effect of permit, etc.
  456. 13Hospitals and small emitters: modifications to Monitoring and Reporting Regulation 2018
  457. 14Former ultra-small emitters: hospital or small emitter permits coming into force after beginning of scheme year
  458. Part 4: Emissions targets
  459. 15Emissions targets other than for hospital-qualifying installations may not exceed maximum amount
  460. 16Emissions targets for 2021-2025 allocation period
  461. 17Emissions targets for 2026-2030 period
  462. 18Emissions targets: calculation of later targets where initial targets based on estimates
  463. 19Emissions targets: hospital or small emitters must not exceed targets
  464. 19ACapacity increases: application to increase emissions targets
  465. 19BCapacity increases: content of application
  466. 19CCapacity increases: grant of application
  467. 19DCapacity increases: net change in installed capacity at installation since reference date
  468. 19ECapacity increases: increase in emissions targets for scheme years
  469. 19FCapacity increases: combined capacity utilisation factor
  470. 19GCapacity increases: interpretation
  471. 20Emissions targets: banking overachieved target
  472. 21Emissions targets: targets for 2026-2030 period for hospital or small emitters in 2021-2025 allocation period
  473. 22Emissions targets: errors
  474. 22APublication of emissions targets and reportable emissions
  475. Part 5: End of hospital or small emitter status
  476. 23End of hospital or small emitter status: ceasing to meet criteria
  477. 23AEnd of hospital or small emitter status: voluntary exit of status for 2024 and 2025 scheme years
  478. 23BEnd of hospital or small emitter status: voluntary exit of status for 2027-2030 allocation period
  479. 24Conversion notices
  480. 25End of hospital or small emitter status: ceasing to meet criteria: publication
  481. 26End of hospital or small emitter status: end of allocation period
  482. Schedule 8: Ultra-small emitters
  483. 1Interpretation
  484. 2Ultra-small emitter status
  485. 3Obtaining ultra-small emitter status for 2026-2030 period
  486. 4Obtaining ultra-small emitter status for 2026-2030 period: modifications to Verification Regulation 2018 for ultra-small emitters in 2021-2025 allocation period
  487. 5Duty to monitor reportable emissions, etc.
  488. 6Reportable emissions must not exceed maximum amount
  489. 7End of ultra-small emitter status: ceasing to meet criteria
  490. 7AEnd of ultra-small emitter status: voluntary exit of status for 2027-2030 allocation period
  491. 8End of ultra-small emitter status: publication
  492. Schedule 8A: Free allocation for former hospital or small emitters and ultra-small emitters
  493. 1Interpretation
  494. 2Application
  495. 3Monitoring methodology plan to be submitted for approval , etc.
  496. 4Calculation and approval of final allocation
  497. 5Modifications to Activity Level Changes Regulation
  498. Schedule 9: Appeals to Scottish Land Court
  499. 1Paragraph 1
  500. 2Paragraph 2
  501. 3Paragraph 3
  502. 4Paragraph 4
  503. Schedule 10: Appeals to Planning Appeals Commission (Northern Ireland)
  504. 1Paragraph 1
  505. 2Paragraph 2
  506. 3Paragraph 3
  507. 4Paragraph 4
  508. Schedule 11: Transitional provisions: installations
  509. 1Permits under GGETSR 2012
  510. 2Applications for permits, etc. under GGETSR 2012
  511. 3Schedule does not apply to permits for relevant Northern Ireland electricity generators, etc.
  512. Explanatory note