The Vehicle Emissions Trading Schemes Order 2023

Allocation of CRTS allowances

13.—(1) The administrator must allocate CRTS allowances in accordance with paragraphs (2) to (7), and subject to paragraph (8).

(2) Except where a CRTS participant falls within paragraph (3), or where paragraph (5) or (7) applies, the administrator must allocate to a CRTS participant for each scheme year a number of CRTS allowances which is equal to P multiplied by T, where—

(a) P is the percentage shown in column 2 of the Table in Part 1 of Schedule 6 for that scheme year; and

(b) T is the total number of cars of which the CRTS participant is the manufacturer and which were registered during that scheme year.

(3) The administrator must allocate to a low-volume CRTS participant a number of CRTS allowances for a scheme year which is equal to the number of cars of which the low-volume CRTS participant is the manufacturer and which are registered during that scheme year, subject to a maximum of 2,499 CRTS allowances.

(4) Paragraph (5) applies for the purpose of calculating the number of CRTS allowances to be allocated to a CRTS participant where—

(a) the CRTS participant is not a low-volume CRTS participant for the scheme year for which the calculation is made (referred to in this paragraph and in paragraph (5) as “the transition year”);

(b) the CRTS participant was a low-volume CRTS participant for the scheme year immediately preceding the transition year; and

(c) the transition year is not the 2030 scheme year.

(5) Where this paragraph applies, the administrator must allocate to the CRTS participant a number of CRTS allowances for the transition year which is equal to the higher of—

(a) the number of cars of which the CRTS participant is the manufacturer and which were registered during the transition year, subject to a maximum of 2,499 CRTS allowances; or

(b) the number which results from the application of the formula in paragraph (2) for the transition year.

(6) Paragraph (7) applies for the purpose of calculating the number of CRTS allowances to be allocated to a CRTS participant which—

(a) was a low-volume CRTS participant by virtue of Part 2 of Schedule 4 for the 2029 scheme year; and

(b) is the manufacturer of fewer than 2,500 cars, but more than 999 cars, which were registered during the 2030 scheme year.

(7) Where this paragraph applies, the administrator must allocate to the CRTS participant a number of CRTS allowances for the 2030 scheme year which is equal to the higher of—

(a) the number of cars of which the CRTS participant is the manufacturer and which were registered during the 2030 scheme year, subject to a maximum of 2,499 CRTS allowances; or

(b) the number which results from the application of the formula in paragraph (2) for the 2030 scheme year.

(8) The allocation of allowances in accordance with this article may not result in the allocation of part of a CRTS allowance which is smaller than one tenth of a CRTS allowance, and a CRTS participant’s allocation of CRTS allowances must, where necessary, be rounded to the nearest decimal place accordingly.