Jurisdiction: United Kingdom
Commencement: 1st January 2026
Amends: The Vehicle Emissions Trading Schemes Order 2023
Mini Summary
The Vehicle Emissions Trading Schemes Order 2023 establishes a series of trading schemes 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.
Register of trading schemes
The Secretary of State must establish a register. This must include information on:
From 3rd January 2024, manufacturers of non-zero emission vehicles* must sign up to the following schemes.
- The Non-Zero-Emission Car Registration Trading Scheme (CRTS).
- The Non-Zero-Emission Van Registration Trading Scheme (VRTS).
- The Non-Zero-Emission Car CO2 Trading Scheme (CCTS).
- The Non-Zero-Emission Van CO2 Trading Scheme (VCTS).
Register of trading schemes
The Secretary of State must establish a register. This must include information on:
- the scheme participants;
- vehicles that have been manufactured and registered under a trading scheme;
- the allocation of allowances;
- trading of allowances and credits; and
- the surrender or expiry of allowances and credits.
Duties
Various duties apply and are available to view on the Legislation Update Service.
Amendment
Manufacturers of cars and vans may borrow allowances under the non-zero emissions registration schemes until 2029, with repayment due in 2030. Manufacturers are also now permitted to trade allowances between the CO2 target schemes and zero-emission vehicle (ZEV) target schemes for cars and vans.
Schedule 3A is added, providing manufacturers with alternative CO2 emissions values that can be used for plug-in hybrid electric vehicles (PHEVs).