The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025

Schedule 6 amended (permits)

8.—(1) Schedule 6 is amended as follows.

Paragraph 4 amended (greenhouse gas emissions permits: content of permit)

(2) In paragraph 4—

(a) after sub-paragraph (1)(hb) insert—

“(hc) the cessation condition (see sub-paragraph (8));”;

(b) in sub-paragraph (6)—

(i) in the opening words after “FA installation” insert “and, in relation to the condition in paragraph (b)(i) only, to an installation referred to in Article 3(1a) of the Activity Level Changes Regulation”;

(ii) omit paragraph (c);

(c) after sub-paragraph (7) insert—

“(8) The cessation condition is a condition requiring the operator, where all regulated activities authorised by the permit have ceased to be carried out at the installation in a scheme year, to notify the regulator of the following on or before the cessation condition notification date—

(a) the date of the cessation;

(b) whether or not the operator intends for one or more of the regulated activities authorised by the permit to resume at the installation;

(c) where the operator does intend for one or more of the regulated activities authorised by the permit to resume at the installation, each of the following—

(i) the date by which the operator expects those regulated activities to resume;

(ii) whether either—

(aa) the installation is technically capable of resuming those regulated activities without physical changes being made; or

(bb) the operator intends for the technical capability required for those regulated activities to resume to be restored at the installation.

(9) But the cessation condition does not apply where either of the following conditions is met—

(a) the operator has applied to surrender the permit under paragraph 11;

(b) all regulated activities authorised by the permit have resumed prior to the cessation condition notification date.

(10) For the purposes of this paragraph, the “cessation condition notification date” is the later of —

(a) the last day of the period of 1 month beginning with the day on which all regulated activities authorised by the permit ceased to be carried out at the installation; and

(b) the 31st December in the scheme year within which the cessation occurs.”.

Paragraph 7 amended (transfer of permits: contents of application)

(3) In paragraph 7(3) for “that has ceased operation” substitute “in circumstances in which the transferred activities have ceased to be carried out unless the transferring operator is satisfied that the new operator intends to resume those activities”.

Paragraph 10A inserted

(4) After paragraph 10 insert—

“Installation to be treated as ceasing operation: regulator’s notice

10A.— (1) Where the regulator gives a notice under sub-paragraph (2) to the operator of an installation at which all regulated activities authorised by the permit have ceased to be carried out, the installation must be treated as having ceased operation for the purposes of both this Order and the Activity Level Changes Regulation on the last day on which a regulated activity was carried out at the installation.

(2) A notice under this sub-paragraph is a notice that states that the regulator considers that all regulated activities authorised by the permit have permanently ceased to be carried out at the installation.

(3) The regulator may give a notice under sub-paragraph (2) if, at any time during which all regulated activities authorised by the permit have ceased to be carried out at an installation, the operator fails to satisfy the regulator (whether in accordance with the cessation condition referred to in paragraph 4(8) or otherwise) that each of the following conditions is met in respect of the installation—

(a) the operator intends for one or more of the regulated activities authorised by the permit to resume at the installation;

(b) either—

(i) the installation is technically capable of resuming those regulated activities without physical changes being made; or

(ii) the operator intends for the technical capability required for those regulated activities to resume to be restored at the installation.

(4) To avoid doubt, nothing in this paragraph prevents the regulator from giving a notice under sub-paragraph (2) in circumstances in which the regulator has previously confirmed that the regulator was, at that time, satisfied that the conditions referred to in sub-paragraph (3) were met in respect of the installation.

(5) The regulator may withdraw a notice under sub-paragraph (2) at any time by giving notice of the withdrawal to the operator.”.

Paragraph 11 amended (surrender of permits)

(5) In paragraph 11—

(a) for sub-paragraph (1) substitute—

“(1) Where a permit authorises a regulated activity to be carried out at an installation which has ceased operation, the operator must apply to the regulator to surrender the permit on or before—

(a) the relevant surrender date; or

(b) such later date as may be agreed by the regulator.

(1A) For the purposes of sub-paragraph (1), the “relevant surrender date” is—

(a) where the regulator has given a notice to the operator of the installation under paragraph 10A(2) (installation to be treated as ceasing operation), the last day of the period of 1 month beginning with the date on which the notice is given;

(b) in any other case, the latest of—

(i) the last day of the period of 1 month beginning with the date on which the installation ceased operation;

(ii) the last day of the period of 1 month beginning with the date on which the operator no longer intends for one or more of the regulated activities authorised by the permit to be resumed at the installation; and

(iii) the last day of the period of 1 month beginning with the day after the date on which the Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025 is made.”;

(b) for sub-paragraph (2) substitute—

“(2) Subject to sub-paragraph (1), an operator may apply to the regulator to surrender a permit if at any time all regulated activities authorised to be carried out by that permit have ceased to be carried out.”;

(c) omit sub-paragraph (8).

Paragraph 12 amended (revocation of permits)

(6) Omit paragraph 12(8A).