The Greenhouse Gas Emissions Trading Scheme (Amendment) (Registries and Fees etc.) Regulations 2011

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Greenhouse Gas Emissions Trading Scheme Regulations 2005 (“the 2005 Regulations”) to give effect to Commission Regulation (EU) No 920/2010 of 7th October 2010 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council (“the Registries Regulation”). They also to amend the powers of the Environment Agency, Scottish Environmental Protection Agency and Department of the Environment in Northern Ireland to enable them to impose charges by means of charging schemes in respect of various functions in relation to the operation of emissions trading registries, the regulation of aviation activities under the EU Emissions Trading Scheme (“the EU ETS”). The regulations also enable the Environment Agency to making charging schemes in relation to its functions in respect of the approval of project activities established under the Kyoto Protocol or for authorisation to participate in such project activities.

Paragraphs 1 to 20 (save paragraph 4) in the Schedule make various amendments to the 2005 Regulations to give effect to the Registries Regulation. The most substantial amendments are made by paragraph 14 which inserts a new regulation 26 into the 2005 Regulations.

Paragraph 4 in the Schedule inserts a new regulation 7A in the 2005 Regulations. This will enable an application to be made for a greenhouse gas emissions permit covering an activity carried out at an installation for which a permit is required only from the beginning of Phase 3 of the EU ETS on 1st January 2013. As a result, an operator who is carrying out (or intending to carry out) such an activity can apply before the beginning of Phase 3. The application can then be considered by the regulator, and a permit (or a variation of an existing permit) granted, before the new Phase 3 requirements take effect.

Paragraphs 21 to 23 in the Schedule amend the Environment Act 1995 to confer new powers on the Environment Agency to make charging schemes in respect of the costs of exercising its functions in relation to aviation accounts in emission trading registries, the regulation of aviation activities under the EU ETS and in respect of functions in relation to the approval of project activities established under the Kyoto Protocol or for authorisation to participate in such project activities under the Greenhouse Gas Emissions Trading Schemes (Amendment) (Fees) and National Emissions Inventory Regulations 2011. Regulation 4 also amends the Agency's existing power to make charging schemes in respect of the costs it incurs in respect of exercising functions in relation to accounts held by operators of fixed installations in emission trading registries to take account of changes which have been made to the existing emissions trading registry.

Paragraphs 24 to 32 in the Schedule make equivalent amendments in respect of the powers of the Department of the Environment in Northern Ireland (“DOENI”). In most cases, the DOENI is required to pass on any charges it imposes to the Environment Agency.

Paragraphs 33 to 38 in the Schedule contain transitional provisions in relation to existing charging powers to ensure that they can continue to be operated where necessary or that they fall away once charging schemes have been made under the new or amended powers.

An Impact Assessment has not been prepared for this instrument. This is because the instrument is only expected to have a minimal impact on the private, voluntary and public sector. An Explanatory Memorandum in relation to these Regulations is available on the legislation website of The National Archives (http://www.legislation.gov.uk ). A transposition note setting out how these Regulations implement the relevant provisions of the Registries Regulation is annexed to that Explanatory Memorandum.