The Vehicle Emissions Trading Schemes Order 2023

CRTS allowances and limits on CRTS allowances and CRTS activity

12.—(1) A CRTS allowance is an allowance for the registration of one NZE car.

(2) The total amount of CRTS allowances which may be allocated for the trading period is limited in accordance with article 13.

(3) The total number of units of activity in the CRTS which may be accounted for by the surrender of a CRTS allowance or a CRTS credit in accordance with article 27 for the trading period is limited to the number which results from the following calculation.

• Step 1

  Calculate the “relevant percentage” for each scheme year which is—

  (a)

  for the 2024 scheme year, 100%

  (b)

  for the 2025 scheme year and the 2026 scheme year, the sum of—

  (i)

  the percentage shown in column 2 of the Table in Part 1 of Schedule 6 (percentage of car registrations for calculating CRTS allowances) for that scheme year;

  (ii)

  the percentage shown in article 15(2) (limits on borrowed CRTS allowances) for that scheme year; and

  (iii)

  the percentage shown in article 23(3) to (5) (limits on conversion of unused CCTS allowances into CRTS credits) for that scheme year; and

  (c)

  for the 2027 scheme year, the 2028 scheme year, the 2029 scheme year and the 2030 scheme year, the percentage shown in column 2 of the Table in Part 1 of Schedule 6 for that scheme year.

• Step 2

  Calculate the number of cars registered during the trading period by a low-volume CRTS participant or by a CRTS participant described in article 13(4) or (6).

• Step 3

  Calculate the number of cars registered during the trading period by a low-volume CRTS participant or by a CRTS participant described in article 13(4) or (6).

  Calculate the total number of cars registered during the trading period, subtract from that number the number obtained at Step 2, and multiply the resulting number by the average of the relevant percentages obtained at Step 1.

• Step 4

  Calculate the number which is equal to 2.5% of all the cars, vans and SPVs which are registered during the trading period.

• Step 5

  Calculate the number of ZE SPVs of category M1 of which an SPV car manufacturer is the manufacturer, which were to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date the SPV was registered and which were registered during the trading period, and multiply that number by 0.5.

• Step 6

  Calculate the number of ZE SPVs of category M1 which are registered during the trading period.

• Step 7

  Calculate the number of ZE wheelchair accessible SPVs which are registered during the trading period and multiply that number by 0.5.

• Step 8

  Add together the numbers which result from Steps 2 to 7.