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The Vehicle Emissions Trading Schemes Order 2023

S.I. 2023/1394 · Made 13 December 2023 · Extends to United Kingdom

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

CLIMATE CHANGE

ROAD TRAFFIC

Made 13th December 2023

Coming into force in accordance with article 1

At the Court at Buckingham Palace, the 13th day of December 2023

Present,

The King’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 Parts 1 and 3 of Schedule 2 and paragraph 9 of Schedule 3 to, the Climate Change Act 2008f1.

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—

  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 and the Welsh Ministers 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 Scottish Parliament and Senedd Cymru and approved by a resolution of each House of Parliament, the Scottish Parliament and Senedd Cymru.

Accordingly, His Majesty, by and with the advice of His Privy Council, makes the following Order:

Annotations to the whole text

Footnotes

f1

2008 c. 27.

Contents

  1. Part 1: Introductory provisions
  2. 1Citation and commencement
  3. 2Extent
  4. 3Interpretation
  5. Part 2: Establishment and general provision in relation to the Trading Schemes
  6. 4Establishment of the Trading Schemes
  7. 5Period by reference to which the Trading Schemes operate
  8. 6Administration of the Trading Schemes
  9. 7Allowances and credits: general
  10. 8Pool participants in the Trading Schemes: general
  11. Part 3: The Trading Schemes
  12. Chapter 1: The Non-Zero-Emission Car Registration Trading Scheme (CRTS)
  13. 9Interpretation of Chapter 1
  14. 10Activity to which the CRTS applies and unit of measurement of activity
  15. 11Participants in the CRTS
  16. 12CRTS allowances and limits on CRTS allowances and CRTS activity
  17. 13Allocation of CRTS allowances
  18. 14Banking CRTS allowances
  19. 15Borrowing CRTS allowances
  20. 16Banked allowances: pool CRTS participants
  21. 17Borrowed allowances: pool CRTS participants
  22. 18CRTS credits: general
  23. 19CRTS credits: registration of ZE SPVs (CRTS participants)
  24. 20CRTS credits: car clubs (CRTS participants)
  25. 21CRTS credits: registration of ZE SPVs (SPV car manufacturers)
  26. 22CRTS credits: car clubs (SPV car manufacturers)
  27. 23CRTS credits: conversion of unused CCTS allowances
  28. 23ACRTS credits: conversion of unused VRTS allowances by a CRTS participant which is also a VRTS participant
  29. 23BCRTS credits: conversion of VRTS credits by a CRTS participant which is also an SPV van manufacturer
  30. 24Measuring activity in the CRTS
  31. 25Trading CRTS allowances and credits: CRTS participants
  32. 25ATrading CRTS allowances with VRTS participants
  33. 26Trading CRTS credits with CRTS participants: SPV car manufacturers
  34. 26ATrading CRTS credits with VRTS participants: SPV car manufacturers
  35. 27Accounting for activity in the CRTS
  36. 28Payments: CRTS
  37. 29Banked or borrowed CRTS allowances of former CRTS participants
  38. 30Expiry of CRTS allowances and CRTS credits
  39. Chapter 2: The Non-Zero-Emission Car CO2 Trading Scheme (CCTS)
  40. 31Activity to which the CCTS applies and unit of measurement of activity
  41. 32Participants in the CCTS
  42. 33CCTS allowances
  43. 34Allocation of CCTS allowances
  44. 35Conversion of unused CRTS allowances into CCTS allowances
  45. 36Measuring activity in the CCTS
  46. 37Trading CCTS allowances
  47. 38Accounting for activity in the CCTS
  48. 39Payments: CCTS
  49. 40Expiry of CCTS allowances
  50. Chapter 3: The Non-Zero-Emission Van Registration Trading Scheme (VRTS)
  51. 41Interpretation of Chapter 3
  52. 42Activity to which the VRTS applies and unit of measurement of activity
  53. 43Participants in the VRTS
  54. 44VRTS allowances and limits on VRTS allowances and VRTS activity
  55. 45Allocation of VRTS allowances
  56. 46Banking VRTS allowances
  57. 47Borrowing VRTS allowances
  58. 48Banked allowances: pool VRTS participants
  59. 49Borrowed allowances: pool VRTS participants
  60. 50VRTS credits: general
  61. 51VRTS credits: registration of ZE SPVs (VRTS participants)
  62. 52VRTS credits: car clubs (VRTS participants)
  63. 53VRTS credits: registration of ZE SPVs (SPV van manufacturers)
  64. 54VRTS credits: car clubs (SPV van manufacturers)
  65. 55VRTS credits: conversion of unused VCTS allowances
  66. 55AVRTS credits: conversion of unused CRTS allowances by a VRTS participant which is also a CRTS participant
  67. 55BVRTS credits: conversion of CRTS credits by a VRTS participant which is also an SPV car manufacturer
  68. 56Measuring activity in the VRTS
  69. 57Trading VRTS allowances and credits: VRTS participants
  70. 57ATrading VRTS allowances with CRTS participants
  71. 58Trading VRTS credits with VRTS participants: SPV van manufacturers
  72. 58ATrading VRTS credits with CRTS participants: SPV van manufacturers
  73. 59Accounting for activity in the VRTS
  74. 60Payments: VRTS
  75. 61Banked or borrowed VRTS allowances of former VRTS participants
  76. 62Expiry of VRTS allowances and VRTS credits
  77. Chapter 4: The Non-Zero-Emission Van CO2 Trading Scheme (VCTS)
  78. 63Activity to which the VCTS applies and unit of measurement of activity
  79. 64Participants in the VCTS
  80. 65VCTS allowances
  81. 66Allocation of VCTS allowances
  82. 67Conversion of unused VRTS allowances into VCTS allowances
  83. 68Measuring activity in the VCTS
  84. 69Trading VCTS allowances
  85. 70Accounting for activity in the VCTS
  86. 71Payments: VCTS
  87. 72Expiry of VCTS allowances
  88. Part 4: Information
  89. 73Information: participants in the Trading Schemes
  90. 74Information: SPV manufacturers
  91. 75Maintenance and audit of records by participants in the Trading Schemes
  92. 76Maintenance and audit of records by SPV manufacturers
  93. 77Preparation of provisional information
  94. 78Error notification
  95. 79Preparation and notification of final information
  96. 80Publication of final information
  97. 81Power of administrator to require information from participants and SPV manufacturers
  98. 82Updating information provided with an application under Part 3 of Schedule 4 (low-volume participants)
  99. 83Updating information provided with an application under Schedule 5 (pool participants)
  100. 84Manner of provision of information to administrator
  101. Part 5: Monitoring compliance and enforcement
  102. 85Powers of administrator in respect of monitoring compliance
  103. 86Power to require production of documents or provision of information
  104. 87Power to question officers of a company
  105. 88Powers of entry, etc
  106. 89Seizure of documents or records
  107. 90Warrant
  108. 91Legal professional privilege
  109. 92Enforcement notices
  110. Part 6: Civil penalties
  111. 93Civil penalties: general
  112. 94Financial penalties: general
  113. 95Non-financial penalties: general
  114. 96Waiver and modification of civil penalties
  115. 97Failure to make a payment to account for activity in the Trading Schemes
  116. 98Failure to provide information under article 73
  117. 99Failure to maintain records
  118. 100Failure to provide information under article 81 (information required for the purposes of administering the Trading Schemes)
  119. 101Failure to provide information under article 86 (information required where suspected failure to comply with this Order)
  120. 102Failure to make officer available for questioning
  121. 103Refusal to allow access to premises
  122. 104Failure to comply with enforcement notice
  123. 105Provision of false or misleading information: participants in the Trading Schemes
  124. 106Provision of false or misleading information: SPV manufacturers
  125. Part 7: Appeals
  126. 107Decisions to which this Part applies
  127. 108Appeal against decisions of the administrator
  128. Part 8: Revocation, amendment and saving of EU Regulations relating to CO2 emission limits
  129. 109Interpretation of Part 8
  130. 110Partial revocation and amendment of Regulation (EU) 2019/631
  131. 111Amendment of Regulation (EU) 725/2011 (eco-innovation for passenger cars)
  132. 112Amendment of Regulation (EU) 427/2014 (eco-innovations for light commercial vehicles)
  133. 113Partial revocation and amendment of Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 (monitoring and reporting of data on vehicle registration)
  134. 114Partial revocation and amendment of Regulation (EU) 63/2011 and Regulation (EU) 114/2013 (derogations)
  135. 115Revocation of Regulation (EU) 2017/1152 and Regulation (EU) 2017/1153
  136. 116Savings for monitoring and compliance in relation to Great Britain
  137. Part 9: Miscellaneous
  138. 117Crown application
  139. 118Review
  140. Signature
  141. Schedule 1: Baseline for the CCTS and VCTS
  142. Part 1: Baseline for the CCTS
  143. 1Interpretation and general
  144. 2Interpretation and general
  145. 3Interpretation and general
  146. 4Interpretation and general
  147. 5Existing manufacturer which met 2021 target
  148. 6Existing manufacturer which met 2021 target
  149. 7Exempt manufacturer for 2021
  150. 8Existing manufacturer which did not meet 2021 target
  151. 9Existing manufacturer which did not meet 2021 target
  152. 10Existing manufacturer in non-compliant pool met individual 2021 target
  153. 11Existing manufacturer in non-compliant pool met individual 2021 target
  154. 12Existing manufacturer in non-compliant pool did not meet individual 2021 target
  155. 13Existing manufacturer in non-compliant pool did not meet individual 2021 target
  156. 14New manufacturer in 2022
  157. 15New manufacturer in 2022
  158. 16New manufacturer in 2023
  159. 17New manufacturer in 2023
  160. 18New manufacturer from 2024
  161. 19New manufacturer from 2024
  162. 20Pool CCTS participant
  163. Part 2: Baseline for the VCTS
  164. 21Interpretation and general
  165. 22Interpretation and general
  166. 23Interpretation and general
  167. 24Interpretation and general
  168. 25Existing manufacturer which met 2021 target
  169. 26Existing manufacturer which met 2021 target
  170. 27Exempt manufacturer for 2021
  171. 28Existing manufacturer which did not meet 2021 target
  172. 29Existing manufacturer which did not meet 2021 target
  173. 30Existing manufacturer in non-compliant pool met individual 2021 target
  174. 31Existing manufacturer in non-compliant pool met individual 2021 target
  175. 32Existing manufacturer in non-compliant pool did not meet individual 2021 target
  176. 33Existing manufacturer in non-compliant pool did not meet individual 2021 target
  177. 34New manufacturer in 2022
  178. 35New manufacturer in 2022
  179. 36New manufacturer in 2023
  180. 37New manufacturer in 2023
  181. 38New manufacturer from 2024
  182. 39New manufacturer from 2024
  183. 40Pool VCTS participant
  184. Schedule 2: Car club conditions
  185. 1Paragraph 1
  186. 2Paragraph 2
  187. 3Paragraph 3
  188. 4Paragraph 4
  189. 5Paragraph 5
  190. 6Paragraph 6
  191. Schedule 3: Determination of the specific emissions of CO2 of completed vans
  192. 1General
  193. 2General
  194. 3General
  195. 4General
  196. 5General
  197. 6Specific emissions of CO 2 of a completed van which undergoes emissions testing at the final stage
  198. 7Specific emissions of CO 2 of a completed van based on a complete base vehicle
  199. 8Specific emissions of CO 2 of a completed van based on an incomplete base vehicle: general
  200. 9Specific emissions of CO 2 of a completed van based on an incomplete base vehicle: general
  201. 10Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  202. 11Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  203. 12Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  204. 13Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  205. 14Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  206. 15Monitoring emissions of CO2: modifications relating to fuel consumption and CO2 emissions
  207. 16Monitoring emissions of CO2: modifications relating to aerodynamic drag
  208. 17Monitoring emissions of CO2: modifications relating to aerodynamic drag
  209. 18Monitoring emissions of CO2: modifications relating to aerodynamic drag
  210. 19Monitoring emissions of CO2: modifications relating to aerodynamic drag
  211. Schedule 3A: Alternative specific emissions of CO2: OVC hybrid electric vehicles
  212. Part 1: General
  213. 1Paragraph 1
  214. Part 2: Applications for alternative specific CO2 emissions
  215. 2Paragraph 2
  216. 3Paragraph 3
  217. 4Paragraph 4
  218. Part 3: Conditions A, B and C
  219. 5Paragraph 5
  220. 6Paragraph 6
  221. 7Paragraph 7
  222. Part 4: Specified information
  223. 8Paragraph 8
  224. 9Paragraph 9
  225. Part 5: Decision on the application
  226. 10Paragraph 10
  227. 11Paragraph 11
  228. 12Paragraph 12
  229. 13Paragraph 13
  230. 14Paragraph 14
  231. Part 6: Determination of alternative specific emissions of CO2
  232. 15Paragraph 15
  233. 16Paragraph 16
  234. 17Paragraph 17
  235. 18Paragraph 18
  236. Schedule 4: Low-volume CRTS participants and low-volume VRTS participants
  237. Part 1: General
  238. 1Paragraph 1
  239. 2Paragraph 2
  240. Part 2: Participants with fewer than 1,000 car or van registrations during a scheme year
  241. 3Paragraph 3
  242. 4Paragraph 4
  243. Part 3: Participants with 1,000 to 2,499 car or van registrations during a scheme year
  244. 5Paragraph 5
  245. 6Paragraph 6
  246. 7Paragraph 7
  247. 8Paragraph 8
  248. 9Paragraph 9
  249. 10Paragraph 10
  250. 11Paragraph 11
  251. 11AParagraph 11A
  252. 12Paragraph 12
  253. 13Paragraph 13
  254. 14Paragraph 14
  255. 15Paragraph 15
  256. 16Paragraph 16
  257. 17Paragraph 17
  258. 18Paragraph 18
  259. Schedule 5: Application by two or more manufacturers to be a pool participant in the Trading Schemes
  260. 1Paragraph 1
  261. 2Paragraph 2
  262. 3Paragraph 3
  263. 4Paragraph 4
  264. 5Paragraph 5
  265. 6Paragraph 6
  266. 7Paragraph 7
  267. 8Paragraph 8
  268. 9Paragraph 9
  269. Schedule 6: Percentage of total car or van registrations for the purpose of calculating CRTS allowances and VRTS allowances
  270. 1Percentage of total car registrations for the purpose of calculating CRTS allowances
  271. 2Percentage of total van registrations for the purpose of calculating VRTS allowances
  272. Schedule 7: Information provisions
  273. Part 1: Information relating to cars and ZE SPVs of category M1
  274. 1Paragraph 1
  275. 2Paragraph 2
  276. 3Paragraph 3
  277. 4Paragraph 4
  278. 5Paragraph 5
  279. Part 2: Information relating to vans, ZE SPVs of category N1 and certain ZE SPVs of category N2
  280. 6Paragraph 6
  281. 7Paragraph 7
  282. 8Paragraph 8
  283. 9Paragraph 9
  284. 10Paragraph 10
  285. Part 3: Information relating to the base vehicle of completed vans
  286. 11Paragraph 11
  287. 12Paragraph 12
  288. 13Paragraph 13
  289. Explanatory note