The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2021

Schedule 4 amended (Monitoring and Reporting Regulation 2018)

22.—(1) Schedule 4 is amended as follows.

Paragraph 8 substituted (Article 12)

(2) For paragraph 8 substitute—

“8.   Article 12 is to be read as if—

(a) paragraph 3 were omitted;

(b) after paragraph 2 there were inserted—

“4.   Where the operator of an installation has submitted a monitoring plan to the regulator, the regulator must, by notice to the operator:

(a) if the plan is in accordance with this Regulation, approve it; or

(b) reject it.

(See articles 28 to 30 of the 2020 Order in relation to the submission of a monitoring plan by an aircraft operator.)”.”.

Paragraph 14 amended (Article 19)

(3) After paragraph 14(a) insert—

“(aa) in point (c) for “points (a) and (b)” there were substituted “points (a), (b) and (ba)”;”.

Paragraph 20A inserted (Article 43)

(4) After paragraph 20 insert—

“20A.   Article 43(4)(c) is to be read as if for “Commission” there were substituted “UK ETS authority”.”.

Paragraph 27 substituted (Article 54)

(5) For paragraph 27 substitute—

“27.   Article 54 is to be read as if for the whole Article there were substituted—

“Article 54 Specific provisions for biofuels

1.   For mixed fuels, the aircraft operator may either assume the absence of biomass and apply a default fossil fraction of 100% or determine a biomass fraction in accordance with paragraph 2 or 3.

2.   Where biofuels are physically mixed with fossil fuels and delivered to an aircraft in physically identifiable batches, the aircraft operator may carry out analyses in accordance with Articles 32 to 35 to determine the biomass fraction on the basis of a relevant standard and the analytical methods set out in those Articles, provided that the use of that standard and those analytical methods is approved by the regulator. Where the aircraft operator provides evidence to the satisfaction of the regulator that such analyses would incur unreasonable costs or are technically not feasible, the aircraft operator may base an estimation of the biomass fraction on a mass balance of fossil fuels and biofuels purchased.

3.   Where purchased biofuel batches are not physically delivered to a specific aircraft, the aircraft operator shall not use analyses to determine the biomass fraction of the fuels used. In such a case, the aircraft operator may determine the biomass fraction using purchase records of biofuel of equivalent energy content, provided that the aircraft operator provides evidence to the satisfaction of the regulator that there is no double counting of the same biofuel quantity, in particular that the biofuel purchased is not claimed to be used by anyone else.

4.   Where a biofuel meets the sustainability criteria referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007(1), the emission factor of the biofuel shall be zero; and for the purpose of determining whether the sustainability criteria are met, the biofuel (wherever supplied) must be treated as supplied in the United Kingdom.

5.   Where a biofuel does not meet those criteria, the carbon content of the biofuel shall be treated as fossil carbon.”.”.

Paragraph 35 amended (Annex 1)

(6) For paragraph 35(c) substitute—

“(c) in section 2, in point 2—

(i) in point (b)(i) “(Method A or Method B)” were omitted;

(ii) after point (e) there were inserted—

“(f) where applicable, a description of the procedure used to assess if biofuels meet the sustainability criteria referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007;

(g) where applicable, a description of the procedure used to determine biofuel quantities based on purchase records in accordance with Article 54(3).”.”.

Paragraph 36 substituted (Annex 2)

(7) For paragraph 36 substitute—

“36.   Annex 2 is to be read as if—

(a) in section 2—

(i) in the first subparagraph before section 2.1—

(aa) for “all activities as listed in Annex I to Directive 2003/87/EC or included in the Union system under Article 24 of that Directive” there were substituted “all regulated activities”;

(bb) for “section 5” there were substituted “section 4”;

(ii) in the second subparagraph before section 2.1 for “sections 4 and 5” there were substituted “section 4”;

(iii) in section 2.4 in the subparagraph relating to Tier 1 for “competent authority or the Commission” there were substituted “UK ETS authority”;

(b) in section 4—

(i) for the heading there were substituted “Definition of tiers for the calculation factors for CO₂ process emissions”;

(ii) for the subparagraph before section 4.1 (beginning “For all process emissions” and ending “from the process”) there were substituted—

“For all CO₂ process emissions (including emissions from the decomposition of carbonates and from process materials containing carbon other than in the form of carbonates, including urea, coke and graphite), where they are monitored using the standard methodology in accordance with Article 24(2), the tiers defined in this section for the applicable calculation factors shall be applied.

In the case of mixed materials which contain inorganic as well as organic forms of carbon, the operator may choose:

—to determine a total preliminary emission factor for the mixed material by analysing the total carbon content, and using a conversion factor and – if applicable – biomass fraction and net calorific value related to that total carbon content; or

—to determine the organic and inorganic contents separately and treat them as two separate source streams.

For emissions from the decomposition of carbonates, the operator may choose for each source stream one of the following methods:

(a) Method A (Input based): The emission factor, conversion factor and activity data are related to the amount of material input into the process.

(b) Method B (Output based): The emission factor, conversion factor and activity data are related to the amount of output from the process.

For other CO₂ process emissions, the operator shall apply only method A.”;

(iii) in section 4.1 in the subparagraph relating to Tier 1 for point (a) there were substituted—

“(a) the standard factors listed in Table 2 of Annex 6 in the case of carbonate decomposition or in Tables 1, 4 or 5 of that Annex for other process materials;”;

(iv) after section 4.4 there were inserted—

“4.5  Tiers for the net calorific value

If relevant, the operator shall determine the net calorific value (“NCV”) of the process material using the tiers defined in section 2.2 of this Annex. NCV is considered not relevant for marginal or de minimis source streams or where the material is not itself combustible without other fuels being added. If in doubt, the operator shall seek confirmation by the regulator on whether NCV has to be monitored and reported.

4.6  Tiers for the biomass fraction

If relevant, the operator shall determine the biomass fraction of the carbon contained in the process material using the tiers defined in section 2.4 of this Annex.”;

(c) section 5 were omitted.”.

Paragraph 38 amended (Annex 4)

(8) For paragraph 38(a) and (aa) substitute—

“(a) in section 1—

(i) in subsection A for “all activities as listed in Annex I to Directive 2003/87/EC or included in the Union system under Article 24 of that Directive” there were substituted “all regulated activities”;

(ii) in subsection C.2 in the first subparagraph for “section 5” there were substituted “section 4”;

(aa) in each of the headings of sections 2 to 20 for “Annex I to Directive 2003/87/EC” there were substituted “Schedule 2 to the Greenhouse Gas Emissions Trading Scheme Order 2020”;

(ab) in section 4 in subsection B for “sections 2, 4 and 5” there were substituted “sections 2 and 4”;

(ac) in section 8—

(i) in subsection A “, and any guidelines published by the Commission for this purpose” were omitted;

(ii) in subsection B in calculation method B (overvoltage method) for “F_CF2F6” in both places there were substituted “F_C2F6”;

(ad) in section 9—

(i) in subsection A for “organic” there were substituted “non-carbonate”;

(ii) in subsection B in the second subparagraph for “organic” there were substituted “non-carbonate”;

(iii) in subsection D for “The following tier definitions” in both places there were substituted “By way of derogation from section 4 of Annex 2, the following tier definitions”;

(ae) in section 10—

(i) in subsection B in the first subparagraph—

(aa) “and section 5” were omitted;

(bb) for “organic” there were substituted “non-carbonate”;

(ii) after subsection B there were inserted—

“C.  Emissions from non-carbonate carbon in raw materials

The operator shall determine the emissions from non-carbonate carbon at least from limestone, shale or alternative raw materials in the kiln in accordance with Article 24(2).

By way of derogation from section 4 of Annex 2, the following tier definitions for the emission factor shall apply:

Tier 1: The content of non-carbonate carbon in the relevant raw material shall be estimated using industry best practice guidelines.

Tier 2: The content of non-carbonate carbon in the relevant raw material shall be determined at least annually following the provisions of Articles 32 to 35.

By way of derogation from section 4 of Annex 2, the following tier definitions for the conversion factor shall apply:

Tier 1: A conversion factor of 1 shall be applied.

Tier 2: The conversion factor shall be calculated applying industry best practice.”;

(af) in section 11 in subsection B in the first subparagraph for “section 5” there were substituted “section 4”;

(ag) in section 12—

(i) in subsection A for “fossil organic material” there were substituted “non-carbonate carbon content”;

(ii) in subsection B in the first subparagraph—

(aa) for “sections 4 and 5” there were substituted “section 4”;

(bb) for “organic content” there were substituted “non-carbonate carbon content”;

(cc) for “organic carbon” there were substituted “non-carbonate carbon”.”.

Paragraph 40 amended (Annex 10)

(9) In paragraph 40—

(a) in sub-paragraph (b)—

(i) before paragraph (i) insert—

“(ai) for point (1) there were substituted—

“(1) Name and address of the installation and details of the following:

(a) type and number of regulated activities carried out at the installation;

(b) address, telephone number and email address of two contact persons;

(c) name of the operator of the installation;

(d) permit number;”;”;

(ii) after paragraph (i) insert—

“(ia) in point (8)(g) for “as recognised in accordance with the acts adopted pursuant to Article 19(3) of Directive 2003/87/EC” there were substituted “in the registry”;”;

(b) after sub-paragraph (c)(iii) insert—

“(iiia) for point (12) there were substituted—

“(12) Memo-items:

(a) amount of biofuels used during the reporting year (in tonnes or m³) listed per fuel type, and whether the biofuels meet the sustainability criteria referred to in the Schedule to the Renewable Transport Fuel Obligations Order 2007;

(b) the net calorific value of biofuels and alternative fuels;”;”.

(1)

S.I. 2007/3072; relevant amending instruments are S.I. 2011/2937 and 2018/374.