{
  "url": "https://openlegislation.uk/vehicle-emissions-trading-schemes-amendment-no-2-order-2025/note",
  "json_url": "https://openlegislation.uk/vehicle-emissions-trading-schemes-amendment-no-2-order-2025/note.json",
  "legislation": "uksi/2025/1101",
  "legislation_title": "The Vehicle Emissions Trading Schemes (Amendment) (No. 2) Order 2025",
  "legislation_url": "https://openlegislation.uk/vehicle-emissions-trading-schemes-amendment-no-2-order-2025",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Order)\nThis Order amends the Vehicle Emissions Trading Schemes Order 2023 (S.I. 2023/1394) (“the 2023 Order”). The 2023 Order established four new trading schemes which limit, or encourage the limitation of, CO2 emissions resulting from the registration of new cars and light commercial vehicles (vans). Two of the schemes apply to cars: the Non-Zero-Emissions Car Registration Trading Scheme (“CRTS”) and the Non-Zero Emission Car CO2 Trading Scheme (“CCTS”), and two apply to vans: the Non-Zero-Emission Van Registration Trading Scheme (“VRTS”) and the Non-Zero Emission Van CO2 Trading Scheme (“VCTS”).\nThe amendments made by Part 2 of this Order—\nextend the scheme years in relation to which participants may borrow CRTS and VRTS allowances (articles 5 and 20 respectively);\nextend the scheme years in relation to which unused CCTS allowances may be converted to CRTS credits, and unused VCTS allowances may be converted to VRTS credits, as well as the caps that apply to such conversions (articles 8 and 23 respectively);\nallow unused VRTS allowances to be converted into CRTS credits and unused CRTS allowances to be converted into VRTS credits (articles 9 and 24 respectively);\nallow CRTS participants which are also SPV van manufacturers to convert VRTS credits into CRTS credits and allow VRTS participants which are also SPV car manufacturers to convert CRTS credits into VRTS credits (articles 10 and 25 respectively);\nallow CRTS participants to trade CRTS allowances with VRTS participants (with the effect that a CRTS allowance is converted to four tenths of a VRTS credit) and VRTS participants to trade VRTS allowances with CRTS participants (with the effect that a VRTS allowance is converted to two CRTS credits on disposal) (articles 12 and 27 respectively);\nallow SPV car manufacturers to trade CRTS credits with VRTS participants (with the effect that a CRTS credit is converted to four tenths of a VRTS credit) and SPV van manufacturers to trade VRTS credits with CRTS participants (with the effect that a VRTS credit is converted to two CRTS credits on disposal) (articles 14 and 29 respectively)\namend the financial penalties for non-compliance (articles 15 and 30 respectively);\namend the qualifying rules for conversion of unused CRTS allowances into CCTS allowances, and unused VRTS allowances into VCTS allowances, to allow banked allowances to be taken into account (articles 18 and 33 respectively).\nPart 2 also makes a number of consequential amendments (see articles 4, 6, 7, 11, 13, 16, 17, 19, 21, 22, 26, 28, 31, 32, 34, 35 and 36) and corrects a number of typographical errors (see articles 6(3)(a), 37, 38 and 43).\nThe amendments made by Part 3 of this Order allow manufacturers of OVC hybrid electric cars and vans which have been type-approved according to certain emission standards to apply for the CO2 emissions of the vehicles to be determined in accordance with new Schedule 3A to the 2023 Order.\nAn impact assessment (in the form of a cost benefit analysis) of the effect that the Trading Schemes will have on the costs of business, the voluntary sector and the public sector is available from the Department for Transport, Great Minster House, 33 Horseferry Road, London SW1P, and is available alongside the instrument and the Explanatory Memorandum on www.legislation.gov.uk.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2025/1101/note",
    "retrieved_at": "2026-10-28T21:10:40.330205+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}