These Regulations may be cited as the Greenhouse Gas Emissions Trading Scheme Regulations 2012 and come into force on 1st January 2013.
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The Greenhouse Gas Emissions Trading Scheme Regulations 2012
From 1st January 2021 these Regulations apply in Northern Ireland only, in relation to any emissions created on or after that date, from a regulated activity at an installation, by the generation of electricity in Northern Ireland for the single wholesale electricity market in Ireland and Northern Ireland.
(1) The DAERA must from time to time—
(a) carry out a review of these Regulations;
(b) set out the conclusions of the review in a report; and
(c) publish the report.
(2) In carrying out the review the DAERA must, so far as is reasonable, have regard to how the Directive, and measures adopted under it by the European Commission, are implemented in ... member States.
(3) The report must in particular—
(a) set out the objectives intended to be achieved by the regulatory system established by these Regulations;
(b) assess the extent to which those objectives are achieved; and
(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.
(4) The first report under this regulation must be published before the end of the period of five years beginning with the day on which these Regulations come into force.
(5) Reports under this regulation are afterwards to be published at intervals not exceeding five years.
(1) In these Regulations—
“ the 2005 Regulations ” means the Greenhouse Gas Emissions Trading Scheme Regulations 2005 ;
“ the 2010 Regulations ” means the Aviation Greenhouse Gas Emissions Trading Scheme Regulations 2010 ;
“ the 2018 surrender deadline ” means, subject to paragraphs (1A) to (1C), 10.59 pm on 29th March 2019;
“ allocation ”, in relation to an allowance, means allocation free of charge in accordance with Chapter 2 or 3 of the Directive (and, except in regulation 87A(3), “allocated” has the corresponding meaning) ;
“ allocation period ” means—
the period which begins with 1st January 2021 and ends with 31st December 2025 (“the first allocation period”);
the period which begins with 1st January 2026 and ends with 31st December 2030 (“the second allocation period”);
“allowance”—
... has the meaning given in Article 3(a) of the Directive, ...
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“ annual reportable emissions ” means the reportable emissions arising in any scheme year;
“ Article 27 installation ” means an installation of the kind described in regulation 15(A1);
“ Article 27a installation ” means an installation of the kind described in regulation 15A(1);
“ Article 27 installation emissions permit ” means a permit which—
is granted following an application under regulation 10(2); or
results from a variation made under regulation 88 or paragraph 2 of Schedule 5;
“authority” means DAERA;
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“ bioliquids ” has the meaning given in Article 2(h) of the Renewable Energy Directive;
“ cease operation ”, in relation to an installation, has the meaning given in paragraph (3);
“ change of status notice ” means a notice under—
paragraph 8(1) or 8(4) of Schedule 5 that an installation will cease to be treated as an Article 27 installation;
paragraph 5(1) of Schedule 5A, that an installation will cease to be treated as an Article 27a installation;
“ chief inspector ” means the chief inspector constituted under regulation 8(3) of the Northern Ireland Regulations;
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“ current operator ” has the meaning given by regulation 12(1);
“DAERA” means the Department of Agriculture, Environment and Rural Affairs in Northern Ireland;
“ the Directive ” means Directive 2003/87/ EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emissions allowance trading within the Community and amending Council Directive 96/61/EC , as amended from time to time and as adapted by Annex 20 to the EEA agreement ;
“ duly made ”, in relation to an application, means made in accordance with the requirements of these Regulations;
“ emissions ” has the meaning given in Article 3(b) of the Directive;
“ emissions target ”, in relation to a scheme year, means an amount of reportable emissions specified in an Article 27 installation emissions permit as the target for that excluded installation in that year;
“entry year” means the scheme year following the scheme year in which the operator of an excluded installation is given a change of status notice;
“ excluded installation ” means—
an Article 27 installation; or
an Article 27a installation;
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“ fee ”, in relation to any matter, means the fee or charge prescribed in respect of that matter by a scheme, or regulations, made under—
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regulation 4 of the Greenhouse Gas Emissions Trading Scheme Charging Scheme Regulations (Northern Ireland) 2010 ; or
Article 127 of the Planning (Northern Ireland) Order 1991 ;
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“ greenhouse gas emissions permit ” means a permit granted following an application under—
regulation 10(1); or
regulation 8 of the 2005 Regulations;
“ installation ” has the meaning given in Article 3(e) of the Directive (and references to an “installation” include a reference to a part of an installation);
“ KP registry administrator ” has the meaning given by regulation 81(1);
“ monitoring and reporting conditions ” has the meaning given by paragraph 3(8) of Schedule 5;
“ monitoring and reporting requirements ” has the meaning given by paragraph 2(3) of Schedule 4;
“ the Monitoring and Reporting Regulation ” means Commission Regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council , as amended from time to time;
“ the Monitoring and Reporting Regulation 2018 ” means Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, as amended from time to time;
“ new operator ” has the meaning given by regulation 12(1);
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“ Northern Ireland Regulations ” means the Pollution Prevention and Control (Industrial Emissions) Regulations (Northern Ireland) 2013;
“ notice of surrender ” has the meaning given in regulation 13(7);
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“ operator ”, in relation to an installation, has the meaning given in paragraph (2) (and “operate” has the corresponding meaning);
“ partial transfer ” has the meaning given by regulation 12(2);
“permit” (except in paragraph 1(2)(b) of Schedule 4 ...) means—
a greenhouse gas emissions permit; or
an Article 27 installation emissions permit;
“ the Planning Appeals Commission ” means the Planning Appeals Commission established under article 110 of the Planning (Northern Ireland) Order 1991 ;
“prescribed” (in relation to a fee) means specified in, or determined under, the scheme or regulations in question;
“ the Registries Regulation 2010 ” means Commission Regulation (EU) No 920/2010 of 7 October 2010 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council ;
...
“the Registries Regulation 2013” means Commission Regulation ( EU ) No 389/2013 of 2 May 2013 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/ EC and No 406/2009/ EC of the European Parliament and of the Council and repealing Commission Regulations ( EU ) No 920/2010 and No 1193/2011, as amended from time to time;
“the Registries Regulation 2019” means Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry, as amended from time to time;
“ registry administrator ” has the meaning given by regulation 8(1);
“ registry account ” means an operator holding account ... in the Union Registry (and “open”, “blocked” , “excluded” or “closed” status, in relation to such an account, have the meanings given by Article 10 of the Registries Regulation 2013 );
“ regulated activity ” means an activity ... that—
is listed in Annex 1 to the Directive, and
results in specified emissions;
“regulator” means the chief inspector;
“ the Renewable Energy Directive ” means Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC , as amended from time to time;
“ reportable emissions ” means—
in relation to an installation, the total specified emissions (expressed in tonnes of carbon dioxide equivalent) which arise from the regulated activities carried out at that installation; ...
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“ revocation notice ” has the meaning given by regulation 14(1);
“ scheme year ” means the year beginning with 1st January 2013 or any subsequent calendar year;
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“ specified emissions ”, in relation to an activity listed in Annex 1 to the Directive, means emissions of gases specified in Annex 1 in respect of that activity;
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“ surrender requirements ” has the meaning given by paragraph 2(4) of Schedule 4;
“ tonne of carbon dioxide equivalent ” has the meaning given in Article 3(j) of the Directive;
“ trading period ” means one of the following ... periods—
2013 to 2020; and
subsequent consecutive periods of ten calendar years;
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“ the Union Registry ” means the registry established by Article 4 of the Registries Regulation 2013 ;
“ the UK Registry ” means the registry operated by the Environment Agency for the purposes specified in Article 3(1) of the Registries Regulation 2010 immediately before the coming into force of these Regulations;
“ variation ”, in relation to a permit or a plan, means the amendment of its provisions (and “vary” has the corresponding meaning);
“ the Verification Regulation ... ” means Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as amended from time to time;
“ working day ” means any day other than—
a Saturday, Sunday, Good Friday, or Christmas Day; or
a day which is a bank holiday under the Banking and Financial Dealings Act 1971 ;
“ written procedures ” means the written procedures required by Article 11(1) of the Monitoring and Reporting Regulation 2018 .
(1A) This paragraph applies if at any time before 10.59 pm on 29th March 2019 an enactment (“enactment 1”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the European Union (Withdrawal) Act 2018 (“the 2018 Act”), is to be a date after 29th March 2019.
(1B) This paragraph applies where—
(a) paragraph (1A) applies; and
(b) at any time on or after 10.59 pm on 29th March 2019 but before the 2018 surrender deadline which applies in relation to enactment 1, a subsequent enactment (“enactment 2”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the 2018 Act, is to be a date after the date provided for in enactment 1,
and in the event of an enactment subsequent to enactment 2, the references in sub-paragraph (b) to enactment 1 are to be read as references to enactment 2 and so on.
(1C) Where paragraph (1A) or paragraph (1B) applies—
(a) if exit day is a day falling before 1st May 2019, the 2018 surrender deadline is immediately before the UK ’s exit from the European Union; and
(b) if exit day is a day falling on or after 1st May 2019, the 2018 surrender deadline is 30th April 2019.
(2) The “operator” of an installation is the person who has control over its operation; but where—
(a) an installation has not been put into operation, the operator is the person who will have control over the operation of the installation when it is put into operation;
(b) an installation that is not an Article 27a installation has ceased operation, the operator is the person who holds the permit relating to the installation; ...
(ba) an Article 27a installation has ceased operation, the operator is the person who had control over its operation immediately before the installation ceased operation; and
(c) the holder of a permit has ceased to have control of the installation to which it relates, the operator is that permit holder.
(3) For the purposes of these Regulations, an installation has ceased operation if—
(a) a regulated activity is no longer being carried out at the installation; and
(b) it is technically impossible to resume operation.
(5) References in these Regulations to anything taking effect (or ceasing to have effect) on a particular date are to be read as references to it taking effect (or ceasing to have effect) as from the beginning of that date.
Schedule 1 (application to the Crown etc.) has effect.
Schedule 2 (notices etc.) has effect.
Schedule 3 (applications etc.) has effect.
(1) Regulation 8(4) of the Northern Ireland Regulations (delegation of functions) has effect as if the reference to the chief inspector's functions included a reference to the chief inspector's functions under these Regulations.
(2) Regulation 40(1) of the Northern Ireland Regulations (power of the Department to give directions) has effect as if the reference to functions under those Regulations included a reference to functions under these Regulations.
(3) Any direction of the Department of the Environment that is given by virtue of paragraph (2) must be published in such manner as the Department of the Environment considers appropriate.
(1) DAERA is the national administrator designated by the United Kingdom for the purposes of the Registries Regulation 2019 , and in these Regulations is referred to in that capacity as the “registry administrator”.
(2) Subject to paragraph (3), the regulator is the competent authority designated by the United Kingdom for the purposes of the Registries Regulation 2019 (other than for Articles 22(3) and 30(7)) .
(3) DAERA is the competent authority so designated for the purposes of—
(a) Article 28(1);
(b) Article 30(8);
(c) Article 30(11); and
(d) Article 66(1).
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(6) The regulator is the competent authority designated by the United Kingdom for the purposes of the Monitoring and Reporting Regulation 2018.
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(8) ... The regulator is the competent authority designated by the United Kingdom for the purposes of the Verification Regulation.
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(1) No person may carry out a regulated activity at an installation except to the extent authorised by a permit held by the operator of the installation.
(2) Paragraph (1) does not apply in relation to a person carrying out a regulated activity at an Article 27a installation.
(1) The operator of an installation (other than an excluded installation) may apply to the regulator for a greenhouse gas emissions permit to carry out a regulated activity at the installation.
(2) The operator of an Article 27 installation may apply to the regulator for an Article 27 installation emissions permit to carry out a regulated activity at the installation.
(3) However, an application may not be made—
(a) under paragraph (1) or (2) where a permit has already been granted in respect of the installation and continues to have effect; or
(b) under paragraph (2) where an Article 27 installation emissions permit has been granted in respect of the installation and has been surrendered or revoked.
(3A) An Article 27 installation emissions permit that is granted for the purposes of the first allocation period continues to have effect for the purposes of the second allocation period if the installation is deemed to be approved by the European Commission under the first subparagraph of Article 27(2) of the Directive in relation to that period.
(4) Following an application under paragraph (1) or (2), the permit must be granted if the regulator is satisfied that—
(a) the application is duly made, and
(b) at the time that the permit is granted (or, if later, has effect) the applicant will be capable of monitoring and reporting emissions from the installation in accordance with—
(i) the monitoring and reporting requirements of the greenhouse gas emissions permit, or
(ii) the monitoring and reporting conditions of the Article 27 installation emissions permit,
but must otherwise be refused.
(5) A permit may be granted under this regulation in respect of more than one installation on the same site, provided that they are operated by the same operator.
(6) Paragraph 1 of Schedule 4 makes further provision about applications for permits.
(7) Paragraph 2 of Schedule 4 makes provision about the contents of greenhouse gas emissions permits, and paragraph 3 of Schedule 5 makes provision about the contents of Article 27 installation emissions permits.
(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The regulator may, by giving notice to the operator, vary a permit at any time and may in particular make any variation of the permit that the regulator considers necessary in consequence of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) any report made by the operator under Article 69 of the Monitoring and Reporting Regulation 2018 ; or
(c) any notification as mentioned in paragraph 2(7)(b) of Schedule 4 (notification of planned changes in operation etc ).
(3) The regulator may by giving notice to the operator vary a permit where the operator—
(a) applies to the regulator for such a variation pursuant to a provision of the permit; or
(b) has failed to comply with a requirement of the permit to apply for such a variation.
(4) The regulator may by giving notice to the operator vary a permit in order to comply with regulator's duty under—
(a) regulation 88(2) or (4) ; or
(b) any of the following provisions of Schedule 5—
(i) paragraph 2(1);
(ii) paragraph 3(3);
(iii) paragraph 6(5) or (6);
(iv) paragraph 7(4)(b), (6)(b) or (7)(b);
(v) paragraph 8(6) or 8(6A) .
(5) A notice given under paragraph (2), (3)(b) or (4) may specify a period within which a fee for the variation of the permit must be paid.
(6) The regulator may by giving notice to the operator replace a permit with a consolidated permit applying to the same regulated activities, and containing the same or equivalent provisions, in the following circumstances—
(a) where the permit has been varied;
(b) where there is more than one permit applying to installations on the same site operated by the same operator.
(1) Subject to paragraph (6), the holder of a permit (“the current operator”) and another person may jointly apply to the regulator for the permit to be transferred to that other person (“the new operator”).
(2) An application may also be made under paragraph (1) for the partial transfer of a permit; and for that purpose a “partial transfer” is a transfer in respect of—
(a) some only of the installations to which the permit relates; or
(b) some only of the parts of an installation to which the permit relates.
(3) Paragraph 3 of Schedule 4 makes further provision about the transfer, or partial transfer, of a permit.
(4) ... An application under paragraph (1) must be granted if the regulator is satisfied that—
(a) the application is duly made, and
(b) the new operator will (from the relevant date) be the operator of the installation and will be capable of monitoring and reporting emissions from the installation in accordance with—
(i) the monitoring and reporting requirements of the greenhouse gas emissions permit, or
(ii) the monitoring and reporting conditions of the Article 27 installation emissions permit,
but must otherwise be refused.
(5) For the purposes of paragraph (4), the relevant date is the date mentioned in paragraph 3(6), (8) or (10) of Schedule 4 as the case may be.
(6) An application for the transfer (or partial transfer) of a permit may not be made in respect of any installation (or part of an installation) that has ceased operation.
(1) This regulation applies where—
(a) after the transfer of a greenhouse gas emissions permit under regulation 12 takes effect, the regulator becomes aware, following a determination of reportable emissions under regulation 44, of an error in a report submitted for a scheme year by the transferring operator under the monitoring and reporting requirements of the permit; and
(b) as a result of the error, the transferring operator failed to comply with the surrender requirements of the permit in respect of the scheme year to which the error relates.
(2) The regulator must give notice to the transferring operator of the error as soon as reasonably practicable.
(3) The transferring operator must, within the period of one month beginning with the date the transferring operator received the notice, effect a transfer to the new operator of allowances equal to the reportable emissions in respect of which, as a result of the error, the transferring operator failed to comply with the surrender condition of the permit.
(4) The new operator must surrender the allowances within the period of one month beginning with the date of the transfer of the allowances.
(5) In paragraph (1), the reference to the transfer of a permit under regulation 12 includes a reference to an application for a transfer of a permit to which effect is given by a variation of the new operator’s existing permit.
(6) In this regulation—
(a) “transferring operator” means the person who was the current operator for the purposes of regulation 12; and
(b) “new operator” has the same meaning as in regulation 12.
(1) Subject to paragraph (4), if an installation has ceased operation the operator must apply to the regulator to surrender the permit authorising regulated activities at the installation.
(1A) Where a permit authorises regulated activity to be carried out at an installation where a regulated activity is no longer being carried out but it is not technically impossible to resume operation, the operator of the installation may apply to the regulator to surrender the permit.
(2) An application under paragraph (1) must be made before the end of the period of one month beginning with the date that the regulated activities at the installation ceased, or such later date as may be agreed with the regulator.
(4) The application need not be made where—
(a) the permit authorises regulated activities at more than one installation, some of which have not ceased operation; and
(b) by the end of the period mentioned in paragraph (2), the operator has applied to vary that permit so that it no longer applies to any of those installations that have ceased operation.
(5) Where the carrying out of regulated activities at an installation mentioned in paragraph (6) has been suspended, but the installation has not ceased operation, the operator may at any time make an application under paragraph (1) but is not obliged to do so.
(6) Those installations are—
(a) an Article 27 installation; or
(b) an installation that, by virtue of Article 10a(3) of the Directive, is not eligible for an allocation.
(7) If the application under paragraph (1) is granted, the notice of determination given to the operator (“notice of surrender”) takes effect on the date specified in the notice.
(8) Paragraph 4 of Schedule 4 makes further provision about the surrender of permits.
(1) The regulator—
(a) may at any time revoke a permit by serving on the operator a notice to that effect (a “revocation notice”), and in particular may do so if the operator has failed to pay a fee for the subsistence of the permit; and
(b) must do so where—
(i) the regulator becomes aware that the operator has failed to comply with regulation 13(1) and (2);
(ii) a greenhouse gas emissions permit is held by the operator of an Article 27a installation;
(iii) an Article 27 installation emissions permit is held by the operator of an Article 27a installation.
(2) A revocation notice takes effect—
(a) 28 days after the date on which it is served; or
(b) if a later date is specified in the notice, on that date.
(3) Paragraph 5 of Schedule 4 makes further provision about the revocation of permits.
(A1) An installation is an Article 27 installation for the duration of a particular allocation period if, in relation to that period, it is deemed to be approved by the European Commission under the first subparagraph of Article 27(2) of the Directive, unless a notice has been given to the operator under paragraph 8(1) or (4) of Schedule 5 (in which case the installation ceases to be an Article 27 installation as from the date specified in the notice).
(B1) An installation's status as an Article 27 installation expires at the end of the particular allocation period in relation to which it has been excluded.
(C1) Where an installation ceases to be an Article 27 installation at the end of the first allocation period in accordance with paragraph (B1) and approval is not deemed in accordance with paragraph (A1) in respect of the second allocation period, paragraph 8(6A) of Schedule 5 applies.
(1) Schedule 5 makes further provision about Article 27 installations.
(2) Subject to paragraphs (3) and (4), and unless a contrary intention appears, these Regulations apply to an Article 27 installation as they apply to an installation that is not an excluded installation.
(3) The following provisions do not so apply—
(a) regulation 12(2); ...
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(4) The following provisions so apply—
(a) paragraph 4 of Schedule 4, but as if—
(i) any reference in that paragraph to the monitoring and reporting requirements of the greenhouse gas emissions permit were a reference to the monitoring and reporting conditions of the Article 27 installation emissions permit; and
(ii) sub-paragraph (1)(c) and sub-paragraphs (2)(b)(ii), (3), (4) and (6) to (8) were omitted;
(b) paragraph 5 of Schedule 4, but as if—
(i) any reference in that paragraph to the monitoring and reporting requirements of the greenhouse gas emissions permit were a reference to the monitoring and reporting conditions of the Article 27 installation emissions permit; and
(ii) sub-paragraph (1)(c) and sub-paragraphs (3)(b)(ii), (4), (5) and (7) to (9) were omitted.
(1) An installation is an Article 27a installation for the duration of a particular allocation period, if, in relation to that period, the installation is excluded pursuant to Article 27a of the Directive, unless a notice has been given to the operator under paragraph 5(1) of Schedule 5A (in which case the installation ceases to be an Article 27a installation as from the date specified in the notice).
(2) An installation's status as an Article 27a installation expires at the end of the particular allocation period in relation to which it is excluded.
(3) Schedule 5A makes further provision about Article 27a installations.
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For each scheme year, the operator of an installation must surrender allowances in accordance with the surrender requirements of the permit for the installation.
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Cite this legislation
The Greenhouse Gas Emissions Trading Scheme Regulations 2012 (legislation.gov.uk, OGL v3.0). Retrieved via LawPlayer, https://lawplayer.com/uk/act/uksi-2012-3038
Contains public sector information licensed under the Open Government Licence v3.0.
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