The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2022

Jurisdiction: UK

Commencement: 14th April 2022

Amends: The Greenhouse Gas Emissions Trading Scheme Order 2020

Mini Summary

Following the UK’s exit from the EU, The Greenhouse Gas Emissions Trading Scheme Order 2020 establishes a UK Emissions Trading Scheme (UK ETS) covering greenhouse gas emissions from power and heat generation, energy intensive industries and aviation.


Various duties apply


A number of changes are made to the 2020 Order, as summarised below.

  • The power to inspect premises to ensure compliance with the Order, may be exercised by an ‘authorised person’*, besides the regulator**.
  • Any person intentionally getting in the way of the regulator or an authorised person whilst they are inspecting premises commit an offence under regulation 40 (Powers of entry, etc.).
  • Individuals who fail to comply with a notice to return allowances as per Article 34V (Return of allowances: notice to operator, etc.) may be liable for a civil penalty. The civil penalty is:
    • £20,000; and
    • £1,000 for each day the person fails to comply with the notice to return allowances (starting with the day on which the initial notice is given).
  • Lastly, where an installation permit is surrendered, or revoked, the operator will not have to pay a second ‘excess emissions penalty’*** if they fail to surrender any allowance shortfall from previous scheme years, in accordance with Article 52 (Failure to surrender allowances).

*An authorised person is a person authorised, in writing, by an enforcing authority to exercise the regulator’s powers under this Order.

**The regulators are:

  • the Environment Agency (EA) in England;
  • Natural Resources Wales (NRW) in Wales;
  • the Scottish Environment Protection Agency (SEPA) in Scotland;
  • the chief inspector in Northern Ireland; and
  • the Secretary of State for offshore installations (stationary technical units where one or more regulated activities listed in Schedule 2 are carried out).

***The excess emissions penalty is a civil penalty that the operator of an installation, or an aircraft operator, must pay if they fail to surrender allowances. The penalty is £100 multiplied by the inflation factor for each allowance that is not surrendered.

Articles 2426 and 31 to The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020  are revoked and replaced by Articles 711, and 12 respectively, in this Order. This substitution does not bring any changes to duties for organisations.


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