Finance Act 2007

Valid from 19/07/2007

16 Emissions trading: charges for allocations U.K.

(1) The Treasury may impose charges by providing for Community tradeable emissions allowances to be allocated in return for payment.

(2) The Treasury must by regulations make provision for and in connection with allocations of allowances in return for payment.

(3) The regulations must provide for allocations to be overseen by an independent person appointed by the Treasury.

(4) The regulations may make any other provision about allocations which the Treasury consider appropriate, including (in particular)—

(a) provision as to the imposition of fees, and as to the making and forfeiting of deposits, in connection with participation in allocations,

(b) provision as to the persons by whom allocations are to be conducted,

(c) provision for the imposition and recovery of penalties for failure to comply with the terms of a scheme made under subsection (5),

(d) provision for and in connection with the recovery of payments due in respect of allowances allocated (including provision as to the imposition and recovery of interest and penalties), and

(e) provision conferring rights of appeal against decisions made in allocations, the forfeiting of deposits and the imposition of penalties (including provision specifying the person, court or tribunal to hear and determine appeals).

(5) The Treasury may make schemes about the conduct and terms of allocations (to have effect subject to any regulations under this section); and schemes may in particular include provision about—

(a) who may participate in allocations,

(b) the allowances to be allocated, and

(c) where and when allocations are to take place.

(6) “Community tradeable emissions allowances” are transferable allowances which—

(a) relate to the making of emissions of greenhouse gases, and

(b) are allocated as part of a system made for the purpose of implementing any Community obligation of the United Kingdom relating to such emissions;

and “greenhouse gases” means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

(7) Regulations under this section are to be made by statutory instrument.

(8) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons unless a draft of the regulations has been laid before, and approved by a resolution of, that House.