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CBAM has been introduced as a complement to EU and UK ETS, in order to “put a fair price” on carbon emitted during the production of intensive industrial goods, such as the aluminium, cement, ceramics, fertiliser, glass, hydrogen, iron and steel sectors. This is done by reporting emissions and buying CBAM certificates to cover those emissions.
Importers will be required to pay a price on imported goods from a third country to cover the emissions as though they had been produced under the EU pricing rules. If a non-EU importer can show they have already paid a carbon price, then that price will be deducted from the costs to the EU importer.
The goal of the scheme is to help tackle climate change and to try and prevent carbon leakage*.
*Carbon leakage is where a manufacturer moves production to another country with a lower carbon price or less stringent emissions regulations.
The mechanism is currently in a transition phase in the EU. This means that any organisation that imports eligible goods* into the EU must report the following information every quarter.
*Eligible goods for this phase are from the cement, iron & steel, aluminium, fertilizer, electricity, and hydrogen sectors. A list of the eligible sectors and associated guidance can be found here.
The full scheme, including requirements to pay for certificates will only fully come into effect in the EU by 2026.
The UK is also aiming to implement UK CBAM by 2027, with consultations on the design and delivery of the scheme happening later this year. There are no current requirements under UK CBAM, however, applicable organisations are encouraged to start collecting data for reporting.
There are current trading systems in place, namely the EU and UK ETS, which operate through the trading of emissions allowances between organizations using a ‘cap and trade’ system. They also include free allowances for organisations who are at risk of carbon leakage in order to keep production in the country.
CBAM differs from an emissions trading scheme in that there is no trading system between organisations. It also aims to phase out free allowances from 2026 as CBAM will apply if they import goods into the EU, regardless of where they are located.
More information and guidance can be found below.
A number of changes that aim to improve the quantity and quality of waste data, especially packaging data, obtained from materials facilities* (MFs), will come into force from 1st October 2024. This data will be used in the implementation of the Extended Producer Responsibility for Packaging (pEPR) scheme, to ensure packaging producers pay the cost of managing the packaging they place on the market.
*Materials facility refers to a site that receives waste material and separates it or consolidates it.
Part 2 of Schedule 9 to The Environmental Permitting (England and Wales) Regulations 2016 was amended by The Environmental Permitting (England and Wales) (Amendment) Regulations 2023. The changes aim to improve the quantity and quality of waste data, especially packaging data, obtained from MFs. Also, more MFs are brought into the scope.
MFs that received and separated mixed waste* were required to collect and report data on the material arriving and leaving the site. MFs likely to receive 1,000 tonnes of mixed waste in a year were required to sample at least 60kg for every 125 tonnes of mixed waste received at the facility from each supplier. Those MFs were also required to sample and report against fewer categories of input and output waste material** and report average data.
*Mixed waste means waste material** of 2 or more types.
**Waste material means household waste or waste of similar type or composition, which contains glass, metal, paper, card, plastic, or fibre-based composite material, and which has been separately collected for re-use or recycling.
From 1 October 2024, more materials facilities will need to sample and report their waste. This includes MFs managing source segregated or single waste streams, bulking stations, and waste transfer stations.
MF operators affected for the first time in October 2024 must notify the regulator in writing if they receive 1,000 tonnes or more of any waste material.
Exemptions
The changes will not apply to MFs that:
Input sampling
Waste material received from each supplier (input material) must be identified within a sample as 1 of the following material types: glass, aluminium, steel, paper, card, plastic bottles, plastic pots, tubs and trays, film or other flexible plastic, other plastic, fibre-based composite material*.
*Fibre-based composite material means packaging material made of paperboard or paper fibres, laminated with plastic.
MF operators must take a sample (input sample) for every 75 tonnes of waste material they receive from a supplier. The average weight per sample must be 60 kg or more and each individual sample must weigh at least 55 kg.
Output sampling
MFs that sort packaging waste must grade specified output materials and record this for the following: glass, paper, card, aluminium, steel, plastic, and fibre-based composite.
Packaging materials
The proportion of packaging and drinks containers (except glass) that are part of the deposit return scheme (DRS) must be measured and recorded during input and output sampling.
N.B. Sampling of glass packaging only needs to be done when requested by the regulator, which must notify the MF at least 4 weeks in advance.
MFs must now report raw data rather than averages and keep data recorded after 1st October 2024 for 7 years.
Detailed guidance on the changes to waste sampling and reporting requirements for MFs can be found here.
Jurisdiction: United Kingdom
Commencement: 1st January 2024
Amends: Assimilated Regulation 2019/631 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles and Assimilated Regulation 2019/1242 setting CO2 emission performance standards for new heavy-duty vehicles
The assimilated Regulation 2019/631 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles and Assimilated Regulation 2019/1242 setting CO2 emission performance standards for new heavy-duty vehicles sets CO2 emission performance standards for new heavy duty vehicles, with the intention of reducing emissions and combating global warming.
From 2025 manufacturers will be required to comply with their specific CO2 emissions target, or will be required to pay an excess CO2 emissions premium if it is not met.
This Regulation applies to new heavy-duty vehicles of categories N2* and N3* that meet the following characteristics:
It also applies to new heavy-duty vehicles of category N* that do not fall within the scope of Regulation (EU) 2019/631 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles and do not fit the characteristics for lorries listed above.
Vehicles that fit into the categories above are, for the purposes of this Regulation, considered new- heavy-duty vehicles for a 12 month period, starting from 1st July 2021, if they are registered in the UK for the first time in that period and have not been previously registered outside the UK.
A previous registration outside the UK made less than 3 months before registration in the UK is not recognised as a previous registration.
*Vehicles of category N and vehicles designed and constructed for the carriage of goods.
*N2 vehicles are vehicles designed and constructed for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes.
*N3 vehicles are vehicles designed and constructed for the carriage of goods and having a maximum mass exceeding 12 tonnes.
Average specific CO2 emissions of a manufacturer
Starting from the 1st of July 2021, and in each subsequent reporting period, the average specific CO2 emissions, in grammes per tonne-kilometre (g/tkm)*, for the preceding reporting period for manufacturers will be set by the Secretary of State in accordance with Article 4.
*g/tkm is a measurement of specific CO2 emissions for freight transport.
Zero- and low-emission heavy-duty vehicles
Starting from 1 July 2021, and for each subsequent reporting period, the zero- and low-emission factor for the preceding reporting period shall be determined for each manufacturer will be set by the Secretary of State in accordance with Article 5. This is calculated by the Secretary of State taking into account the number and CO2 emissions of zero- and low-emission heavy-duty vehicles in the manufacturer’s fleet in a reporting period.
Specific CO2 emissions targets of a manufacturer
Starting from the 1st of July 2026, and in each subsequent reporting period, a specific CO2 emissions target for the preceding reporting period shall be determined for each manufacturer by the Secretary of State in accordance with Article 6.
Emission credits and emission debts
To determine a manufacturer’s compliance with its specific CO2 emissions targets in the reporting periods of the years 2025 to 2029, account shall be taken of its emission credits or emission debts determined in accordance with Article 7.
Emission credits can be acquired in the reporting years 2019 to 2029. However, the emission credits acquired in the reporting periods of the years 2019 to 2024 are only taken into account for the purpose of determining the manufacturer’s compliance with the specific CO2 emissions target of the reporting period of the year 2025.
Emission debts are only acquired in the reporting periods of the years 2025 to 2029 and the total emission debt of a manufacturer must not exceed the emission debt limit*.
Emission credits and debts acquired in the reporting periods of the years 2025 to 2028 can be carried-over from one reporting period to the next reporting period and any remaining emission debts shall be cleared in the reporting period of the year 2029.
*The emission debit limit is the maximum amount a manufacturer can be in debt which is capped at 5 % of the specific CO2 emissions target in the reporting period of the year 2025 multiplied by the number of heavy-duty vehicles of the manufacturer in that period.
Compliance with the specific CO2 emissions targets
If a manufacturer is found to have excess CO2 in any reporting period from 2025 onwards, an excess CO2 emission premium will be imposed on the manufacturer in the form of a fine, in accordance with Article 8.
Verification of the CO2 emissions of heavy-duty vehicles in-service
Manufacturers must ensure the CO2 emission and fuel consumption values recorded in the customer information file, referred to in Article 9(4) of Regulation (EU) 2017/2400 for the determination of CO2 emissions and fuel consumption of heavy-duty vehicles, correspond to the CO2 emissions from and fuel consumption of heavy-duty vehicles in-service.
The Secretary of State can impose premiums on vehicle manufacturers for excess CO2 emissions. The manufacturer must be notified in writing where an excess CO2 emissions premium is imposed on them. The manufacturer has the right to appeal against the excess CO2 emissions premiums. Administrative fines can also be imposed on manufacturers where they do not report correct data on engine types for vehicles. This amendment has no direct relevance to environmental matters.
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Jurisdiction: United Kingdom
Commencement: 31st December 2023
Amends: Assimilated Regulation 1107/2009 concerning the placing of plant protection products on the market
N.B. This entry refers to the assimilated legislation as it applies in England, Scotland and Wales (GB) only, the EU version linked at the top of this entry applies in Northern Ireland.
Regulation (EC) No 1107/2009 (‘PPP Regulation’) is enforced by The Plant Protection Products Regulations 2011 and The Plant Protection Products (Fees and Charges) Regulations 2011.
Various duties apply.
Seeds that have been treated with a plant protection product before 31st December 2020 may continue to be placed on the market until 1st July 2027, in accordance with the Plant Protection Products (Miscellaneous Amendments) (EU Exit) Regulations 2019.
Parallel trade permits
A new framework has been introduced for parallel trade permits*.
*Parallel trade permits allowed plant protection products to be imported from the European Union into the United Kingdom where the product was identical in composition to a plant protection product already authorised in the UK.
Holders of parallel trade permits must apply to reinstate the permit by 1st April 2024. Applications must include:
Parallel trade permits are valid:
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Jurisdiction: Great Britain
Commencement: 31st December 2023
Amends: Assimilated Regulation 1272/2008 on classification, labelling and packaging of substances and mixtures
Various duties apply.
It is no longer a requirement to include the chemical’s unique formula identifier in the supplemental information section of a label.
The following amendments are revoked in response to the Retained EU Law (Revocation and Reform) Act 2023 (a previous update).
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Jurisdiction: United Kingdom
Commencement: 20th December 2023
Amends: New legislation
Low carbon hydrogen producers* may apply for financial support via a hydrogen production revenue support contract. N.B. Producers are only eligible if the hydrogen is produced in accordance with the UK Low Carbon Hydrogen Standard – Version 3.
*Low carbon hydrogen producers are producers of hydrogen who emit fewer greenhouse gases.
The Secretary of State may issue a notice, in accordance with regulation 3, requiring producers to comply with a later version of the UK Low Carbon Hydrogen Standard.
Low carbon hydrogen producers
Low carbon hydrogen producers must:
Low carbon hydrogen counterparties
Low carbon hydrogen counterparties* must:
*A low carbon hydrogen counterparty is the person or organisation providing financial support to a low carbon hydrogen producer.
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Jurisdiction: Great Britain
Commencement: 1st January 2024
Amends: New legislation
A series of trading schemes are established to limit greenhouse gas emissions from cars and vans.
From 3rd January 2024, manufacturers of non-zero emission vehicles* must sign up to the following schemes.
*Non-zero emission vehicles are vehicles that emit greenhouse gases.
Register of trading schemes
The Secretary of State must establish a register. This must include information on:
Various duties apply and are available to view on the Legislation Update Service.
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Jurisdiction: Great Britain
Commencement: 1st January 2024
Amends: The Greenhouse Gas Emissions Trading Scheme Order 2020
Following the United Kingdom’s (UK) exit from the European Union (EU), The Greenhouse Gas Emissions Trading Scheme Order 2020 establishes a UK Emissions Trading Scheme (UK ETS) covering greenhouse gas emissions (GHG) from power and heat generation, energy intensive industries and aviation. It replaces the European Union Emissions Trading System (EU ETS) for UK participants.
The UK ETS begins on 1st January 2021. Before the UK left the EU, the EU ETS was applied in the UK through The Greenhouse Gas Emissions Trading Scheme Regulations 2012. All UK operators that carried out an activity covered by the EU ETS were required to hold a permit, which was a licence to operate and emit greenhouse gases covered by the EU ETS. Activities covered by the EU ETS are any of the activities listed in Annex I to Directive 2009/29/EC to improve and extend the greenhouse gas emission allowance trading scheme of the Community (‘EU ETS Directive’).
The UK ETS does not significantly change the requirements for participating UK operators from those brought in by the EU ETS. Elements of the scheme will be familiar to operators. It is designed to maintain continuity with the EU ETS and to facilitate possible linkage in the future, however this is subject to ongoing trade negotiations between the UK and EU and would require further secondary legislation.
Key provisions included in this Order cover the scope of the scheme, monitoring and reporting requirements, the cap (the total level of emissions permitted) and the trajectory (the rate at which the cap declines) and the roles of the regulators in monitoring and enforcing the rules of the UK ETS. Secondary legislation will be introduced under the Finance Act 2020 to establish other parts of the UK ETS including rules for the auctioning of emissions allowances. Secondary legislation for the UK ETS currently includes:
The regulated activities covered by the UK ETS are listed in Schedule 2. Aviation activities are covered by the scheme and the definition of this is given in Schedule 1. The scheme covers electricity generation and heavy energy-using industries such as power stations, refineries, iron and steel, cement and lime, paper, food and drink, glass, ceramics, engineering, and the manufacture of vehicles. Other organisations, including universities and hospitals, may also be covered by the UK ETS depending upon the combustion capacity of equipment at their sites.
The UK ETS continues the principals of emissions trading by allocating and trading GHG emissions allowances. One allowance equals one tonne of carbon dioxide (CO2) equivalent. At the end of each year, installations must have enough allowances to account for their GHG emissions. They have the flexibility to buy additional allowances on top of their allocation, or to sell surplus allowances generated from reducing their emissions below their allocation.
Phase I of the UK ETS will run from 2021-2030 and is split into two allocation periods:
The regulators in each jurisdiction that the Regulations apply to are the following:
*’Installation’ means a stationary technical unit where one or more regulated activities listed in Schedule 2 are carried out. ‘Installation’ does not include any of the following (which are outside the scope of the UK ETS):
For qualifying aircraft operators the regulators depend on which jurisdiction the aircraft operator is registered in:
The EA is the default regulator for new aircraft operators that do not have a registered office or place of residence in the UK. From 2026, the regulator for aircraft operators will be one of the four above and depend on the jurisdiction where the highest proportion of emissions occur.
Various duties apply.
Operators of electricity generators may now retroactively apply for free allocations* if they did not anticipate supplying electricity to the grid but subsequently did.
*The United Kingdom has capped the total level of emissions that may be produced in the UK. Operators of certain activities are allocated allowances which allow them to release a specified quantity of emissions.
Free allocations
The following installations may now apply for free allocations, in accordance with Regulation (EU) 2019/331 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC.
*CHP electricity is electricity produced from a combined heat and power plant.
Aircraft
Operators may be required to return allowances that have not been claimed within a scheme year.
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When you choose to work with The Compliance People, you’re not just ensuring compliance for your business; you’re actively participating in transforming lives.
As a social enterprise, 100% of profits generated by our business are gift-aided directly to our parent charity, Newground Together.
Our charity operates a number of successful programmes, one of which is the Energy Advice Workshops. It was at one of these workshops, held at Colne Citadel, where our team met Terry. During the workshop, Terry shared with us that he was bitterly cold, his hands clasping a warm cup of coffee for comfort.
Through speaking with Terry, the team found out he lived in a private rented property without electricity. He also told them that he was getting nowhere despite trying for months to get help from his landlord. Unfortunately, Terry was also unable to contact his electric company as he had no credit on his phone.
Terry’s situation was dire: he resorted to eating cold food and was struggling with alcohol. Eager to offer the best possible support, the team, with Terry’s permission, initiated contact with his electricity provider.
Having explained the situation to the electricity provider, it turned out that Terry had not cashed in the monthly vouchers he had been sent from the government for around £67 per month (EBSS- Energy Bill support scheme). The energy provider arranged for the vouchers to be resent out straight away.
Furthermore, the team helped Terry set up an account for a meter at a Pay Point shop. They also gave him essential items from the Warmer Together Programme, including a hat, gloves, a throw, and a snoodie, to help him stay warm. Terry was informed that the team would return to Colne Citadel the following week, and he was invited to come back and share his progress with them.
The following week, the team returned to see a different Terry who exclaimed: “I cannot tell you how much your assistance has helped”. His appearance was also remarkably different; he was wearing clean clothes and smiling. He said the difference the team had made was huge and we were pleased to hear he was no longer cold at home.
Greener Together referred Terry to the Citizen’s Advice Bureau in Nelson, which assisted him in obtaining Fuel Vouchers. Additionally, they introduced him to Andy’s Man Club and Minds Matter, providing options for further support should he require it.
Several months later, Terry has developed effective coping strategies to manage any challenges he encounters. He’s now volunteering at Colne Citadel, contributing to their vegetable garden. This role has also allowed him to broaden his network of support.
As part of improving building safety, following the Grenfell Fire, 3 new laws came into force on 1st January 2024 in Wales.
From 6th April 2024 the building control regime in Wales changes, with a new mandatory scheme for Registered Building Control Approvers (RBCAs) and Registered Building Inspectors (RBIs) coming into operation and replacing the Construction Industry Council Approved Inspectors Register (CICAIR). RBCAs will be registered for 4 years and RBIs for 3 years with the ability for those registered to be sanctioned or have their registration suspended or cancelled for non-compliance with standards.
In November the Welsh Government published guidance, standards and codes for building control approvers and inspectors which can be accessed online here.
Welsh Ministers are now able to recover charges for the regulation of building safety in Wales, as such non-compliant building work may result in fees being imposed on relevant duty holders.
Higher-risk buildings (HRB) in Wales are defined as a building that is at least 18 metres in height or has at least 7 stores and contains:
N.B. A HRB in Wales only requires the presence of a single residential unit, in England a HRB requires 2 or more residential units.
A summary of changes made by these regulations can be found on the Legislation Update Service as updates under the Building Act 1984
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