The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024

Schedule 2 amended (meaning of installation and regulated activity)

28.—(1) Schedule 2 is amended as follows.

Paragraph 3 amended (meaning of regulated activity, etc.)

(2) In paragraph 3—

(a) in sub-paragraph (1)—

(i) in the words before paragraph (a) after “means” insert “any of the following”;

(ii) in paragraph (a) omit the “and” at the end of the paragraph;

(iii) after paragraph (b) insert—

“(c) where the activity set out in column 1 of the first row of table C (combustion of fuels, etc.) is carried out on an upstream site, upstream GHG removal on or after the relevant date in any stationary technical unit on the site that results in emissions of carbon dioxide.”;

(b) after sub-paragraph (6) insert—

“(6A) In this paragraph—

“relevant date” means 1st January 2025 or, if the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024 is made on or after 16th November 2024, the first day of the fourth month after the month in which that Order is made;

“upstream GHG removal” means the removal of constituent greenhouse gases from petroleum (whether by a chemical or physical process);

“upstream site” means the site of—

(a)

a project carried out by virtue of a licence granted under section 2 of the Petroleum (Production) Act 1934(1), section 3 of the Petroleum Act 1998(2) or section 2 of the Petroleum (Production) Act (Northern Ireland) 1964(3);

(b)

a facility (other than a liquefied natural gas import or export facility or a facility operated by a gas transporter) where constituent greenhouse gases are removed from petroleum for the purpose of enabling it to be introduced into a pipeline system operated by a gas transporter or to be conveyed to an electricity generating station, a gas storage facility, a liquefied natural gas import or export facility or any place outside the United Kingdom.

(6B) In sub-paragraph (6A)—

“gas storage facility” means a gas storage facility as defined in section 12(6) of the Gas Act 1995(4) or a gas storage facility as defined in Article 3(1) of the Gas (Northern Ireland) Order 1996(5);

“gas transporter” means a gas transporter as defined in section 7(1) of the Gas Act 1986(6) or the holder of a licence under Article 8(1)(a) of the Gas (Northern Ireland) Order 1996;

“liquefied natural gas import or export facility” means an LNG import or export facility as defined in section 12(6) of the Gas Act 1995 or an LNG facility as defined in Article 3(1) of the Gas (Northern Ireland) Order 1996;

“petroleum” has the same meaning as in Part 1 of the Petroleum Act 1998(7) and includes petroleum that has undergone any processing.”.

(1)

1934 c. 36, repealed by section 51 of, and Schedule 5 to, the Petroleum Act 1998.

(2)

1998 c. 17.

(3)

1964 c. 28 (N.I.).

(4)

1995 c. 45. The definitions of “gas storage facility” and “LNG import or export facility” are inserted by section 92(11)(b) of the Energy Act 2011 (c. 16).

(5)

S.I. 1996/275 (N.I. 2). The definition of “gas storage facility” is amended by regulation 4(1)(c) of S.R. 2020 No. 279. The definition of “LNG facility” is inserted by regulation 12(a) of S.R. 2013 No. 92.

(6)

1986 c. 44. The term “gas transporter” is substituted by section 76(2) of the Utilities Act 2000 (c. 27).

(7)

See section 1.