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Jurisdiction: UK
Commencement: 31st December 2020
Amends: The Greenhouse Gas Emissions Trading Scheme Regulations 2012
The Greenhouse Gas Emissions Trading Scheme Regulations 2012 implement the European Union Emissions Trading System (EU ETS) into UK law.
This comes into force immediately before IP completion day, the end of the implementation period of the UK leaving the EU.
As part of its exit from the EU, the UK is ceasing participation in the EU Emissions Trading Scheme (EU ETS) at the end of the implementation period (currently 31st December 2020). Significant changes are made so that from 1st January 2021 these Regulations will apply in Northern Ireland (NI) only, for electricity generation for the wholesale electricity market in Ireland and NI. NI electricity generators will continue to be subject to the same monitoring and compliance obligations as they currently are under EU ETS.
Heat emissions will now be out of scope of EU ETS in NI; there is reported to only be one combined heat and power plant in NI that will be affected by this.
UK operators of a greenhouse gas emissions permit will still need to meet their obligations for any emissions during the transition period, i.e. up to 31st December 2020.
A previous amendment, The Greenhouse Gas Emissions Trading Scheme (Amendment) (EU Exit) Regulations is revoked, as is the majority of The Greenhouse Gas Emissions Trading Scheme (Amendment) (EU Exit) (No. 2) Regulations, which were made prior to the Northern Ireland Protocol being in effect and were used to provide certainty for EU ETS participants in the event of a no deal exit from the EU.
Following exit from the EU, the UK will likely impose a price on carbon emissions by implementing a UK ETS that is similar to EU ETS, or by implementing a UK carbon emissions tax. This will be established in separate legislation.
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Jurisdiction: UK
Commencement: 31st January 2020
Amends: The Greenhouse Gas Emissions Trading Scheme Regulations 2012 (SI 2012/3038) as amended
The Greenhouse Gas Emissions Trading Scheme Regulations 2012 (SI 2012/3038) as amended complete the UK’s transposition of European Directive 2009/29/EC which amended Directive 2003/87/EC (‘the EU ETS Directive’), to improve and extend the Greenhouse Gas emission allowance trading scheme. The Regulations consolidate and replace a number of legislations that has transposed the EU ETS Directive into UK law.
Various minor corrections are made following technical errors in the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Regulations 2019 ( the “previous amendment”) These include:
The commencement date of various regulations of the previous amendment are brought forward to 1st February 2020. This is to ensure the necessary provisions are brought into force before 1st January 2021, when the remainder of that amendment comes into force, to ensure the legislation can continue to function during any implementation period following the UK’s exit from the European Union.
Directive 2004/87/EC establishing a system for greenhouse gas emission allowance trading within the Union will be revoked when it no longer applies to the UK, presumably after the transition period.
This amendment does not change any duties for businesses.