The Vehicle Emissions Trading Schemes (Amendment) Order 2024

• Citation: S.I. 2024/1130
• Sections: 25

Section 1 Citation, commencement and extent

(1) This Order may be cited as the Vehicle Emissions Trading Schemes (Amendment) Order 2024.

(2) Part 1 and articles 3 to 11 and 13 come into force on the 21st day after the day on which this Order is made.

(3) Articles 12 and 14, Part 3 and Part 4 come into force on 1st January 2025.

(4) This Order extends to England and Wales, Scotland and Northern Ireland.

Section 2 Amendment of the Vehicle Emissions Trading Schemes Order 2023

The Vehicle Emissions Trading Schemes Order 2023 is amended in accordance with this Order.

Section 3 Amendment to article 3 (interpretation)

(1) In article 3(1)—

(a) in paragraph (e) of the definition of “manufacturer”, after “Regulation (EU) 2017/1151” insert “or Regulation (EU) 595/2009 ” ;

(b) after the definition of “type approval” insert—

“ UN Regulation No 154 ” means UN Regulation No 154 – Uniform provisions concerning the approval of light duty passenger and commercial vehicles with regards to criteria emissions, emissions of carbon dioxide and fuel consumption and/or the measurement of electric energy consumption and electric range (WLTP) ;

(c) in paragraph (b) of the definition of “the zero-emission conditions”, after “van or SPV,” insert “and subject to paragraph (8A),” .

(2) After article 3(8) insert—

(8A) Condition B does not need to be met in the case of a vehicle which was type-approved in accordance with Annex 21 to Regulation (EU) 2017/1151 as a Fuel Cell Vehicle or a Fuel Cell Hybrid Vehicle where the fuel cell is powered by hydrogen.

(8B) For the purposes of paragraph (8A)—

“ Fuel Cell Vehicle ” has the same meaning as in—

point 3.3.19 of Annex XXI of Regulation (EU) 2017/1151 as that Regulation has effect in domestic law, or

where the Regulation (EU) 2017/1151 as that Regulation applies in EU law is relevant, paragraph 3.3.19 of UN Regulation No 154;

“ Fuel Cell Hybrid Vehicle ” has the same meaning as in—

point 3.3.20 of Annex XXI of Regulation (EU) 2017/1151 as that Regulation has effect in domestic law, or

where the Regulation (EU) 2017/1151 as that Regulation applies in EU law is relevant, paragraph 3.3.20 of UN Regulation No 154.

Section 4 Amendment to article 19 (CRTS credits: registration of ZE SPVs (CRTS participants))

In article 19—

(a) in paragraph (1), for “Subject to paragraph (3), a” substitute “A” ;

(b) in paragraph (2), for “Subject to paragraph (3), a” substitute “A” ;

(c) omit paragraph (3).

Section 5 Amendment to article 23 (CRTS credits: conversion of unused CCTS allowances)

In article 23—

(a) in paragraph (3), for “number of CRTS allowances allocated to the CRTS participant for that scheme year” substitute “total number of cars of which the CRTS participant is the manufacturer and which were registered during that scheme year” ;

(b) in paragraph (4), for “number of CRTS allowances allocated to the CRTS participant for that scheme year” substitute “total number of cars of which the CRTS participant is the manufacturer and which were registered during that scheme year” ;

(c) in paragraph (5), for “number of CRTS allowances allocated to the CRTS participant for that scheme year” substitute “total number of cars of which the CRTS participant is the manufacturer and which were registered during that scheme year” .

Section 6 Amendment to article 51 (VRTS credits: registration of ZE SPVs (VRTS participants))

In article 51—

(a) in paragraph (1), for “Subject to paragraph (2), a” substitute “A” ;

(b) omit paragraph (2).

Section 7 Amendment to article 55 (VRTS credits: conversion of unused VCTS allowances)

In article 55—

(a) in paragraph (3), for “number of VRTS allowances allocated to the VRTS participant for that scheme year” substitute “total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year” ;

(b) in paragraph (4), for “number of VRTS allowances allocated to the VRTS participant for that scheme year” substitute “total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year” ;

(c) in paragraph (5), for “number of VRTS allowances allocated to the VRTS participant for that scheme year” substitute “total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year” .

Section 8 Amendment to article 73 (information: participants in the Trading Schemes)

In article 73(2), after “Schedule 7” insert “, except for the information in paragraphs 1(s), 6(r) and 6(s) of that Schedule” .

Section 9 Amendment to article 77 (preparation of provisional information)

In article 77—

(a) in paragraph (1)(l), after “banked CRTS allowances” insert “, within the meaning of article 9(b)” ;

(b) in paragraph (1)(m), after “banked VRTS allowances” insert “, within the meaning of article 41(b)” .

Section 10 Amendment to article 94 (financial penalties: general)

In article 94(6), after “Wales, to” insert “be” .

Section 11 Amendment to article 105 (provision of false or misleading information: participants in the Trading Schemes)

After article 105(10) insert—

(11) The administrator may impose the penalties in paragraph (12) on a participant in the Trading Schemes where an officer of a company who is made available by that participant in accordance with article 87 (power to question officers of a company) provides false or misleading information when questioned under that article.

(12) The penalties are—

(a) the financial penalty of £750,000 or, if lower, 0.5% of the turnover of the participant in the Trading Schemes for its financial year ending during the scheme year to which the false or misleading information relates;

(b) publication; and

(c) a block.

Section 12 Amendment to Schedule 3 (determination of the specific emissions of CO 2 of completed vans)

In Schedule 3—

(a) in paragraph 2, for “1.375” substitute “1.387” ;

(b) in paragraph 11(b), for “1.375” substitute “1.387” ;

(c) in paragraph 12(c), for “1.375” substitute “1.387” .

Section 13 Amendment to Schedule 4 (low-volume CRTS participants and low-volume VRTS participants)

(1) In paragraph 9(d) of Schedule 4 for “and” substitute “or” .

(2) After paragraph 10(e)(vi) of Schedule 4 insert—

(vii) for an application relating to the VRTS, confirmation of whether each van is of category N1 or N2;

Section 14 Amendment to Schedule 7 (information provisions)

In paragraph 12(f) of Schedule 7, for “1.375” substitute “1.387” .

Section 15 Amendment to article 2 (extent)

(1) In article 2(1), after “and Scotland, subject to paragraph (2)” insert “and paragraph (3)” .

(2) After paragraph (2) insert—

(3) On and after 1st January 2025, Parts 2 to 7 and 9 extend to England and Wales, Scotland and Northern Ireland.

Section 16 Amendment to article 3 (interpretation)

(1) In article 3(2), for “Great Britain” substitute “the United Kingdom” .

(2) In article 3(3), in both places it occurs, for “Great Britain” substitute “the United Kingdom” .

Section 17 Amendment to article 90 (warrant)

(1) In article 90(4)(b), for “.” substitute “;” .

(2) After article 90(4)(b) insert—

(c) in Northern Ireland, a lay magistrate.

Section 18 Amendment to article 94 (financial penalties: general)

(1) After article 94(5), insert—

(5A) In Northern Ireland, a financial penalty is recoverable as if it were payable under an order of the County Court.

(2) After article 94(6), insert—

(7) Where action is taken under paragraph (5A) for the recovery of a sum payable as a financial penalty pursuant to this Order, the financial penalty is, for Northern Ireland, to be treated for the purposes of Article 116 of the Judgments Enforcement (Northern Ireland) Order 1981 (register of judgments) as if it were a judgment in respect of which an application has been accepted under Article 22 or 23(1) of that Order.

Section 19 Interpretation of Part 4

In this Part—

“ Regulation (EU) 1014/2010 ” means Commission Regulation (EU) No 1014/2010 of 10 November 2010 on monitoring and reporting of data on the registration of new passenger cars pursuant to Regulation (EC) No 443/2009 of the European Parliament and of the Council ;

“ Regulation (EU) 63/2011 ” means Commission Regulation (EU) No 63/2011 of 26 January 2011 laying down detailed provisions for the application for a derogation from the specific CO 2 emission targets pursuant to Article 11 of Regulation (EC) No 443/2009 of the European Parliament and of the Council ;

“ Regulation (EU) 725/2011 ” means Commission Implementing Regulation (EU) No 725/2011 of 25 July 2011 establishing a procedure for the approval and certification of innovative technologies for reducing CO 2 emissions from passenger cars pursuant to Regulation (EC) No 443/2009 of the European Parliament and of the Council ;

“ Regulation (EU) 293/2012 ” means Commission Implementing Regulation (EU) No 293/2012 of 3 April 2012 on monitoring and reporting of data on the registration of new light commercial vehicles pursuant to Regulation (EU) No 510/2011 of the European Parliament and of the Council ;

“ Regulation (EU) 114/2013 ” means Commission Delegated Regulation (EU) No 114/2013 of 6 November 2012 supplementing Regulation (EU) No 510/2011 of the European Parliament and of the Council with regard to rules for the application for a derogation from the specific CO 2 emissions targets for new light commercial vehicles ;

“ Regulation (EU) 427/2014 ” means Commission Implementing Regulation (EU) No 427/2014 of 25 April 2014 establishing a procedure for the approval and certification of innovative technologies for reducing CO2 emissions from light commercial vehicles pursuant to Regulation (EU) No 510/2011 of the European Parliament and of the Council ;

“ Regulation (EU) 2019/631 ” means Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO 2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011 .

Section 20 Revocation of Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 (monitoring and reporting of data on vehicle registration)

Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 are revoked in relation to Northern Ireland, subject to the savings in article 25.

Section 21 Revocation of Regulation (EU) 63/2011 and Regulation (EU) 114/2013 (derogations)

Regulation (EU) 63/2011 and Regulation (EU) 114/2013 are revoked in relation to Northern Ireland.

Section 22 Amendment of Regulation (EU) 725/2011 (eco-innovation for passenger cars)

(1) Regulation (EU) 725/2011 is amended as follows.

(2) In article 12(2)—

(a) omit point (a);

(b) in point (b) omit “in relation to Great Britain,”.

(3) In article 12(3), omit “under point (a) of paragraph 2, or in relation to whom a notice is given under point (b) of that paragraph,”.

Section 23 Amendment of Regulation (EU) 427/2014 (eco-innovations for light commercial vehicles)

(1) Regulation (EU) 427/2014 is amended as follows.

(2) In article 12(2)—

(a) omit point (a);

(b) in point (b) omit “in relation to Great Britain,”.

(3) In article 12(3), omit “under point (a) of paragraph 2, or in relation to whom a notice is given under point (b) of that paragraph,”.

Section 24 Partial revocation and amendment of Regulation (EU) 2019/631

(1) Articles 2(4), 4, 5, 6, 7, 7a, 8, 9, 10 and 14 of, and Annexes 1 to 5 to, Regulation (EU) 2019/631 are revoked in relation to Northern Ireland, subject to the savings in article 25.

(2) Articles 1(2) to (7), 2(1A), (2A) and (5A), and 15 are revoked, subject to the savings in article 25.

(3) In article 2(1), after “12, 13,” omit “15”.

Section 25 Savings for monitoring and compliance in relation to Northern Ireland

(1) In this article—

“ EU target ” means a manufacturer’s specific emissions target calculated using vehicles of the manufacturer first registered in the European Union in the calculations in points 1 to 3 of Part A or B of Annex I to Regulation (EU) 2019/631 in accordance with article 25(4);

“ old scheme year ” means a calendar year occurring during the period beginning with 1st January 2021 and ending with 31st December 2024;

“ revocations ” means the revocations effected by articles 20 and 24;

“ specific emissions obligation ” means the duty imposed on a manufacturer by Article 4 of Regulation (EU) 2019/631 .

“ UK target ” means a manufacturer’s specific emissions target calculated using vehicles of the manufacturer first registered in the United Kingdom in the calculations in points 1 to 3 of Part A or B of Annex I to Regulation (EU) 2019/631 in accordance with article 25(4);

(2) The revocations do not affect—

(a) the operation of the specific emissions obligation in relation to Northern Ireland in respect of an old scheme year; or

(b) any power conferred, or duty imposed, on a manufacturer, the Secretary of State or the First-tier Tribunal by or under the legislation revoked by the revocations which may or must be exercised—

(i) after the end of an old scheme year in relation to Northern Ireland; and

(ii) in relation to the specific emissions obligation in relation to Northern Ireland in respect of an old scheme year.

(3) Any power mentioned in sub-paragraph (b) of paragraph (2) may, and any duty mentioned in that sub-paragraph must, be exercised on and after the date on which this Part comes into force as if the revocations had not been effected.

(4) For the purposes of paragraphs (2) and (3), when calculating the specific emissions target in Annex I of Regulation (EU) 2019/631 —

(a) in points 1 and 2 of Part A, any reference to “new passenger car” must be read as if it means “motor vehicle of category M1 as defined in Article 4 of Regulation (EU) 2018/858 , as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which is registered in the United Kingdom or European Union for the first time and which has not previously been registered outside the United Kingdom or European Union”;

(b) in point 3 of Part A, any reference to “average specific emissions of CO₂”must be read as if it means “in relation to a manufacturer, the average specific CO₂ emissions of passenger cars of category M1 as defined in Article 4 of Regulation (EU) 2018/858 , as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which are registered in the United Kingdom or European Union for the first time and which have not previously been registered outside the United Kingdom or European Union, of which it is the manufacturer”;

(c) in points 1 and 2 of Part B, any reference to “new light commercial vehicle” must be read as if it means “motor vehicle of category N1 as defined in Article 4 of Regulation (EU) 2018/858 , as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 , as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, as that Regulation has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which is registered in the United Kingdom or European Union for the first time and which has not previously been registered outside the United Kingdom or European Union”; and

(d) in point 3 of Part B, any reference to “average specific emissions of CO₂” must be read as if it means “in relation to a manufacturer, the average specific CO₂ emissions of light commercial vehicles of category N1 as defined in Article 4 of Regulation (EU) 2018/858 , as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 , as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, as that Regulation has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which are registered in the United Kingdom or European Union for the first time and which have not previously been registered outside the United Kingdom or European Union, of which it is the manufacturer”.

(5) When determining the specific emissions target in Annex I, the Secretary of State must calculate a UK target and an EU target.

(6) A manufacturer’s specific emissions target is the higher of the UK target or the EU target, unless the manufacturer notifies the Secretary of State otherwise within 30 days of receipt by the manufacturer of their specific emissions target.