Article 52 Failure to surrender allowancesI1

United Kingdom

(1)

Subject to paragraphs (4) to (9), the operator of an installation F1, an aircraft operator, or a maritime operator is liable to the civil penalty (the “excess emissions penalty”) referred to in paragraph (2) where—

(a)

in the case of the operator, the operator fails to surrender sufficient allowances, contrary to—

(i)

article 27;

(ii)

the requirement of a surrender notice set out in paragraph 11(4)(b)(iii) of Schedule 6;

(iii)

the requirement of a revocation notice set out in paragraph 12(5)(b)(iii) of that Schedule;

(b)

in the case of the aircraft operator, the aircraft operator fails to surrender sufficient allowances, contrary to article 34;

F2(c)

in the case of a maritime operator, the maritime operator fails to surrender sufficient allowances, contrary to paragraph 15 of Schedule 2A.

(2)

The excess emissions penalty is £100 multiplied by the inflation factor for each allowance that the operator F3, the aircraft operator, or the maritime operator fails to surrender.

F4(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

This paragraph applies where—

(a)

the regulator becomes aware that an installation's reportable emissions (as determined by the regulator under article 45) in a scheme year exceed the installation's verified reportable emissions for that year; and

(b)

the operator of the installation failed to surrender allowances equal to the difference—

(i)

on or before 30th April in the year following the scheme year referred to in sub-paragraph (a); or

(ii)

where the end date set out in a surrender notice under paragraph 11 of Schedule 6 or a revocation notice under paragraph 12 of that Schedule falls in the scheme year referred to in sub-paragraph (a), on or before the date set out in the notice for the surrender of allowances.

(5)

In paragraph (4), “verified reportable emissions” means reportable emissions—

(a)

verified in accordance with a condition of a permit included under paragraph 4(2)(b) of Schedule 6 (including for the purpose of complying with the requirements of a surrender notice under paragraph 11, or a revocation notice under paragraph 12, of that Schedule); or

(b)

previously determined by the regulator under article 45.

(6)

Where paragraph (4) applies, the operator is liable to the civil penalty referred to in paragraph (10) (and not the excess emissions penalty) in respect of the failure to surrender allowances referred to in paragraph (4)(b).

(7)

This paragraph applies where the regulator becomes aware that—

(a)

an aircraft operator's aviation emissions (as determined by the regulator under article 45) in a scheme year exceed the aircraft operator's verified aviation emissions for that year; and

(b)

the aircraft operator failed to surrender allowances equal to the difference on or before 30th April in the year following the scheme year referred to in sub-paragraph (a).

(8)

In paragraph (7), “verified aviation emissions” means aviation emissions—

(a)

verified under article 33(1);

(b)

considered verified under article 33(2); or

(c)

previously determined by the regulator under article 45.

(9)

Where paragraph (7) applies, the aircraft operator is liable to the civil penalty referred to in paragraph (10) (and not the excess emissions penalty) in respect of the failure to surrender allowances referred to in paragraph (7)(b).

F5(9A)

This paragraph applies where the regulator becomes aware that—

(a)

a maritime operator’s maritime emissions less any surrender deduction (as determined by the regulator under article 45A or 45B) in a scheme year exceed the maritime operator’s verified maritime emissions less any surrender deduction for that year; and

(b)

the maritime operator failed to surrender allowances equal to the difference on or before 30th April in the year following the scheme year referred to in sub-paragraph (a).

(9B)

In paragraph (9A), “verified maritime emissions less any surrender deduction” means maritime emissions and, where appliable, the surrender deduction—

(a)

verified under paragraph 14(2) of Schedule 2A; or

(b)

previously determined by the regulator under article 45A or 45B.

(9C)

Where paragraph (9A) applies, the maritime operator is liable to the civil penalty referred to in paragraph (10) (and not the excess emissions penalty) in respect of the failure to surrender allowances referred to in paragraph (9A)(b).

(10)

The civil penalty is £20 multiplied by the inflation factor for each allowance that the operator F6, the aircraft operator, or the maritime operator failed to surrender.

(11)

For the purposes of this article, the inflation factor is F7CPI₂ /CPI₁ or 1, whichever is greater, where—

CPI₂ is the consumer prices index for the F8month preceding the month that includes the day on or before which the allowance was required to be surrendered;
CPI₁ is the consumer prices index for March 2021.

(12)

In paragraph (11), “consumer prices index” means—

(a)

the all items consumer prices index published by the Statistics Board M1; or

(b)

if that index is not published for a month, any substituted index or index figures published for that month by the Statistics Board.

Annotations

Textual amendments

F1: Words in art. 52(1) substituted (1.7.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (S.I. 2026/392), art. 1(1), Sch. 2 para. 14(2)(a)
F2: Art. 52(1)(c) inserted (1.7.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (S.I. 2026/392), art. 1(1), Sch. 2 para. 14(2)(b)
F3: Words in art. 52(2) substituted (1.7.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (S.I. 2026/392), art. 1(1), Sch. 2 para. 14(3)
F4: Art. 52(3) omitted (1.1.2025) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 (S.I. 2024/1366), arts. 2(2)(b), 19(2)
F5: Art. 52(9A)-(9C) inserted (1.7.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (S.I. 2026/392), art. 1(1), Sch. 2 para. 14(4)
F6: Words in art. 52(10) substituted (1.7.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (S.I. 2026/392), art. 1(1), Sch. 2 para. 14(5)
F7: Words in art. 52(11) substituted (1.1.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 (S.I. 2024/1366), arts. 2(2)(b), 19(3)(a)
F8: Words in art. 52(11) substituted (1.1.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 (S.I. 2024/1366), arts. 2(2)(b), 19(3)(b)

Marginal citations

M1: The Statistics Board was established by section 1 of the Statistics and Registration Service Act 2007 (c. 18).

Commencement

I1: Art. 52 in force at 12.11.2020, see art. 2(1)