The Greenhouse Gas Emissions Trading Scheme and National Emissions Inventory (Amendment) Regulations 2013

EXPLANATORY NOTE

(This note is not part of the Regulations)

Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emissions allowance trading within the Community(1) (“the Directive”) is currently implemented in the United Kingdom by the Greenhouse Gas Emissions Trading Scheme Regulations 2012 (S.I. 2012/3038), which came into force on 1st January 2013 (“the 2012 Regulations”). Those Regulations consolidated (with amendments) and replaced the previous implementing Regulations, namely the Greenhouse Gas Emissions Trading Scheme Regulations 2005 (S.I. 2005/925) and the Aviation Greenhouse Gas Emissions Trading Scheme Regulations 2010 (S.I. 2010/1996).

Part 2 (regulations 2 to 6) of these Regulations amends provisions of the 2012 Regulations.

Regulation 3 amends regulation 52, which sets out the penalty for operating an installation without a permit. The amendment will enable the regulator to impose a penalty that is greater than the economic benefit of non-compliance as calculated under regulation 52(2), while preserving the full extent of the regulator’s discretion under regulation 51 of the 2012 Regulations.

Regulation 4 amends the transitional provisions of the 2012 Regulations, extending the discretion under regulation 51 to any remaining penalties in respect of breaches of the 2005 or the 2010 Regulations, and aligning the penalty for under-reporting emissions arising before 2013 with the provisions in regulation 54(4) to (6) of the 2012 Regulations (which apply to emissions in 2013 and subsequent years).

Regulation 5 updates the provisions on the Union Registry of EU emissions trading allowances, and the UK Registry of project credits issued under the Kyoto Protocol, in order to take account of the new Commission Regulation on registries.

Regulation 6 makes a number of minor amendments.

Part 3 (regulations 7 to 12) amends provisions of the Greenhouse Gas Emissions Trading Scheme (Amendment) and National Emissions Inventory Regulations 2005 (S.I. 2005/2903). Those Regulations deal with the approval of projects under the Kyoto Protocol(2) and with the preparation of a national inventory of greenhouse gas emissions under Article 4(1)(a) of the United Nations Framework Convention on Climate Change(3).

Regulation 8 inserts a provision requiring those Regulations to be periodically reviewed.

Regulation 10 removes a power of entry to premises (and connected powers of investigation and enquiry) relating to the preparation of a national inventory.

Regulation 11 abolishes a number of criminal offences relating to the preparation of the national inventory. In place of those offences, regulation 12 introduces a system of civil penalties modelled on Part 7 of the 2012 Regulations. An appeal against the imposition of a penalty may be made to the First-tier tribunal.

Part 4 (regulation 13) amends the definitions in section 41A of the Environment Act 1995, which applies to regulators in England, Wales and Scotland. The amendments replace the references to the Registries Regulations 2010 and 2011, which were repealed, with a reference to the Registries Regulation 2013, which replaced them.

Part 5 (regulations 14 to 16) similarly amends the definitions in the Environment (Northern Ireland) Order 2002 which applies to functions in Northern Ireland.

Part 6 (regulation 17) similarly amends the definitions in the Greenhouse Gas Emissions Trading Scheme Charging Scheme Regulations (Northern Ireland) 2010 which applies to functions in Northern Ireland.

An impact assessment has not been prepared as the instrument is not expected to have any significant impact on the private, voluntary or public sectors. A transposition note setting out how these Regulations implement the relevant provisions of the Directive is annexed to the Explanatory Memorandum published alongside the instrument on the legislation website of The National Archives (http://www.legislation.gov.uk).

(1)

OJ No L 275, 25.10.2003, p 32: the Directive was amended by European Parliament and Council Directives 2004/101/EC (OJ No L 338, 13.11.2004, p 18), 2008/101/EC (OJ No L 8, 13.1.2009, p 3) and 2009/29/EC (OJ No L 140, 5.6.2009, p 63), and by Regulation (EC) No 219/2009 of the European Parliament and of the Council (OJ No L 87, 31.3.2009, p 109).

(2)

Kyoto Protocol to the United Nations Framework Convention on Climate Change (Cm 6485).

(3)

Cm 2833.