In Schedule 1 to the Pollution Prevention and Control Act 1999 (c. 24) (purposes for which provision may be made by regulations under section 2), after paragraph 21 there is inserted—

“Emissions quota trading schemes: penalties

21A

(1)

The regulations may authorise the inclusion in a trading scheme of—

(a)

provision for penalties in respect of contraventions of provisions of the scheme;

(b)

provision for the amount of any penalty under the scheme to be such as may be set out in, or calculated in accordance with—

(i)

the scheme, or

(ii)

the regulations (including regulations made after the scheme).

(2)

In this paragraph “trading scheme” means a scheme of the kind mentioned in paragraph 1(3).”