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The Greenhouse Gas Emissions Trading Scheme Order 2020

Type Statutory-Instrument

Publication 2020-11-11

Last updated 2026-03-11

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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articles 86

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(1) For mixed fuels, the aircraft operator may either assume the absence of biomass and apply a default fossil fraction of 100% or determine a biomass fraction in accordance with paragraph 2 or 3. (2) Where biofuels are physically mixed with fossil fuels and delivered to an aircraft in physically identifiable batches, the aircraft operator may carry out analyses in accordance with Articles 32 to 35 to determine the biomass fraction on the basis of a relevant standard and the analytical methods set out in those Articles, provided that the use of that standard and those analytical methods is approved by the regulator. Where the aircraft operator provides evidence to the satisfaction of the regulator that such analyses would incur unreasonable costs or are technically not feasible, the aircraft operator may base an estimation of the biomass fraction on a mass balance of fossil fuels and biofuels purchased. (3) Where purchased biofuel batches are not physically delivered to a specific aircraft, the aircraft operator shall not use analyses to determine the biomass fraction of the fuels used. In such a case, the aircraft operator may determine the biomass fraction using purchase records of biofuel of equivalent energy content, provided that the aircraft operator provides evidence to the satisfaction of the regulator that there is no double counting of the same biofuel quantity, in particular that the biofuel purchased is not claimed to be used by anyone else. (4) Where a biofuel meets the sustainability criteria ..., the emission factor of the biofuel shall be zero; and for the purpose of determining whether the sustainability criteria are met, the biofuel (wherever supplied) must be treated as supplied in the United Kingdom. (5) Where a biofuel does not meet the sustainability criteria, the carbon content of the biofuel shall be treated as fossil carbon. (6) In this Article, “sustainability criteria”, in relation to biofuel, means the sustainability criteria (within the meaning of the Renewable Transport Fuel Obligations Order 2007) that applied for the purposes of that Order on the date of purchase of the biofuel.

28

Article 55 (2) is to be read as if for “Commission” there were substituted “ UK ETS authority ”.

29

Article 58 (1) is to be read as if the second subparagraph were omitted.

30

Article 68 is to be read as if for the whole Article there were substituted—

Annex X (minimum content of annual reports) has effect for the purposes of article 33 of and paragraph 4(2)(b) of Schedule 6 and paragraph 11(2)(b) of Schedule 7 to the 2020 Order.

31

Article 71 is to be read as if—

(a) the first sentence were omitted;

(b) for “With regard to the application of the exception, as specified in Article 4(2)(d) of Directive 2003/4/EC”, there were substituted “ With regard to the potential application in relation to emission reports of the exemption in section 43 of the Freedom of Information Act 2000 , the exception in regulation 12(5)(e) of the Environmental Information Regulations 2004 or the exception in regulation 10(5)(e) of the Environmental Information (Scotland) Regulations 2004 ”.

32

Article 72 (3) is to be read as if “calculating the distance and payload pursuant to Article 57 and” were omitted.

33

Article 73 is to be read as if—

(a) in the words before point (a), for the words from “Each activity” to “aircraft operator” there were substituted “ Each regulated activity carried out by an operator and each aviation activity carried out by an aircraft operator ”;

(b) points (b) and (c) were omitted;

34

Article 78 is to be read as if the words from “However” to the end were omitted.

35

Annex 1 is to be read as if—

(a) in section 1—

(i) in point (1)(a)—

(aa) in the opening words “a description of the installation and activities carried out by the installation to be monitored, containing” were omitted;

(bb) in point (i) for “description” there were substituted “list”;

(cc) in point (ii) “describing the installation or” were omitted;

(ii) in point (2)(b) for “and de minimis” in both places it occurs there were substituted “, de minimis and marginal”;

(b) in section 2, in point 1—

(i) in point (a), “the administering Member State,” were omitted;

(ii) in point (d), for “covered by Annex I to Directive 2003/87/EC” there were substituted “ an aviation activity ”;

(iii) in point (k), for “Article 28a(6) of Directive 2003/87/EC” there were substituted “ article 33(2) of the 2020 Order ”;

(i) in point (b)(i) “(Method A or Method B)” were omitted;

(ii) after point (e) there were inserted—

(f) where applicable, a description of the procedure used to assess if biofuels meet the sustainability criteria (as defined in Article 54(6)); (g) where applicable, a description of the procedure used to determine biofuel quantities based on purchase records in accordance with Article 54(3).

36

Annex 2 is to be read as if—

(a) in section 2—

(i) in the first subparagraph before section 2.1—

(aa) for “all activities as listed in Annex I to Directive 2003/87/EC or included in the Union system under Article 24 of that Directive” there were substituted “all regulated activities”;

(bb) for “section 5” there were substituted “section 4”;

(ii) in the second subparagraph before section 2.1 for “sections 4 and 5” there were substituted “section 4”;

(iii) in section 2.4 in the subparagraph relating to Tier 1 for “competent authority or the Commission” there were substituted “UK ETS authority”;

(b) in section 4—

(i) for the heading there were substituted “Definition of tiers for the calculation factors forCO₂ process emissions”;

(ii) for the subparagraph before section 4.1 (beginning “For all process emissions” and ending “from the process”) there were substituted—

For all CO₂ process emissions (including emissions from the decomposition of carbonates and from process materials containing carbon other than in the form of carbonates, including urea, coke and graphite), where they are monitored using the standard methodology in accordance with Article 24(2), the tiers defined in this section for the applicable calculation factors shall be applied. In the case of mixed materials which contain inorganic as well as organic forms of carbon, the operator may choose: —to determine a total preliminary emission factor for the mixed material by analysing the total carbon content, and using a conversion factor and – if applicable – biomass fraction and net calorific value related to that total carbon content; or —to determine the organic and inorganic contents separately and treat them as two separate source streams. For emissions from the decomposition of carbonates, the operator may choose for each source stream one of the following methods: (a) Method A (Input based): The emission factor, conversion factor and activity data are related to the amount of material input into the process. (b) Method B (Output based): The emission factor, conversion factor and activity data are related to the amount of output from the process. For other CO₂ process emissions, the operator shall apply only method A.

(iii) in section 4.1 in the subparagraph relating to Tier 1 for point (a) there were substituted—

(a) the standard factors listed in Table 2 of Annex 6 in the case of carbonate decomposition or in Tables 1, 4 or 5 of that Annex for other process materials;

(iv) after section 4.4 there were inserted—

4.5Tiers for the net calorific value If relevant, the operator shall determine the net calorific value (“NCV”) of the process material using the tiers defined in section 2.2 of this Annex. NCV is considered not relevant for marginal or de minimis source streams or where the material is not itself combustible without other fuels being added. If in doubt, the operator shall seek confirmation by the regulator on whether NCV has to be monitored and reported. 4.6Tiers for the biomass fraction If relevant, the operator shall determine the biomass fraction of the carbon contained in the process material using the tiers defined in section 2.4 of this Annex.

37

Annex 3 is to be read as if section 1 were omitted.

38

Annex 4 is to be read as if—

(a) in section 1—

(i) in subsection A for “all activities as listed in Annex I to Directive 2003/87/EC or included in the Union system under Article 24 of that Directive” there were substituted “all regulated activities”;

(ii) in subsection C.2 in the first subparagraph for “section 5” there were substituted “section 4”;

(aa) in each of the headings of sections 2 to 20 for “Annex I to Directive 2003/87/EC” there were substituted “Schedule 2 to the Greenhouse Gas Emissions Trading Scheme Order 2020”;

(ab) in section 4 in subsection B for “sections 2, 4 and 5” there were substituted “sections 2 and 4”;

(ac) in section 8—

(i) in subsection A “, and any guidelines published by the Commission for this purpose” were omitted;

(ii) in subsection B in calculation method B (overvoltage method) for “FCF2F6” in both places there were substituted “FC2F6”;

(ad) in section 9—

(i) in subsection A for “organic” there were substituted “non-carbonate”;

(ii) in subsection B in the second subparagraph for “organic” there were substituted “non-carbonate”;

(iii) in subsection D for “The following tier definitions” in both places there were substituted “By way of derogation from section 4 of Annex 2, the following tier definitions”;

(ae) in section 10—

(i) in subsection B in the first subparagraph—

(aa) “and section 5” were omitted;

(bb) for “organic” there were substituted “non-carbonate”;

(ii) after subsection B there were inserted—

C.Emissions from non-carbonate carbon in raw materials The operator shall determine the emissions from non-carbonate carbon at least from limestone, shale or alternative raw materials in the kiln in accordance with Article 24(2). By way of derogation from section 4 of Annex 2, the following tier definitions for the emission factor shall apply: Tier 1: The content of non-carbonate carbon in the relevant raw material shall be estimated using industry best practice guidelines. Tier 2: The content of non-carbonate carbon in the relevant raw material shall be determined at least annually following the provisions of Articles 32 to 35. By way of derogation from section 4 of Annex 2, the following tier definitions for the conversion factor shall apply: Tier 1: A conversion factor of 1 shall be applied. Tier 2: The conversion factor shall be calculated applying industry best practice.

(af) in section 11 in subsection B in the first subparagraph for “section 5” there were substituted “section 4”;

(ag) in section 12—

(i) in subsection A for “fossil organic material” there were substituted “non-carbonate carbon content”;

(ii) in subsection B in the first subparagraph—

(aa) for “sections 4 and 5” there were substituted “section 4”;

(bb) for “organic content” there were substituted “non-carbonate carbon content”;

(cc) for “organic carbon” there were substituted “non-carbonate carbon”.

(b) in each of the headings of sections 21, 22 and 23, for “Directive 2009/31/EC” there were substituted “ the CCS licensing regime ”;

(c) in section 21, in subsection A, for “other activities covered by Directive 2003/87/EC” there were substituted “ other regulated activities ”;

(d) in section 22, in subsection B, for “Directive 2003/87/EC” in both places it occurs there were substituted “ the 2020 Order ”;

(e) in section 23—

(i) in subsection A, in the first subparagraph, for “Directive 2009/31/EC” there were substituted “ the CCS licensing regime ”;

(ii) in subsection A, in the second subparagraph, after “with”, there were inserted “ domestic legislation which immediately before IP completion day implemented ”;

(iii) in subsection B.3, in the definition of “Tend”, after “with”, there were inserted “ domestic legislation which immediately before IP completion day implemented ”.

(f) after section 23 there were inserted—

(24) UPSTREAM GHG REMOVAL AS LISTED IN SCHEDULE 2 TO THE GREENHOUSE GAS EMISSIONS TRADING SCHEME ORDER 2020 A.Scope The operator shall monitor and report all CO₂ emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) that are released in a combustion process or as vented emissions without a combustion process. Where emissions are released in a combustion process, the scope is as set out in section 1 of this Annex. Where emissions are released as vented emissions without a combustion process, the operator shall include at least vents and unlit flares. B.Specific monitoring rules Where emissions are released in a combustion process, monitoring shall be carried out in accordance with section 1 of this Annex. Where emissions are released as vented emissions without a combustion process, if a measurement-based methodology is used, Annex 8 is to be read as if in section 1 in Table 1 (tiers for CEMS (maximum permissible uncertainty for each tier)) for the first row there were substituted:

	Tier 1	Tier 2	Tier 3	Tier 4
“CO ₂ emission sources	± 17.5%	± 12.5%	± 7.5 %	N.A.”.

Where emissions are released as vented emissions without a combustion process, the operator may choose to apply a calculation-based methodology whereby: (a) vented emissions released at a vent or unlit flare are to be treated as a “source stream” for the purposes of this Regulation and monitored accordingly; (b) venting is to be treated as the process that causes vented emissions; (c) emissions are to be determined by multiplying the activity data related to vented emissions, expressed as tonnes or normal cubic metres, by the corresponding emission factor, expressed as t CO₂/t or t CO₂/Nm³. Where the methodology referred to in the preceding paragraph is applied, for the purposes of that methodology: (a) Article 3 is to be read as if in point (13) (definition of “emission factor”) “assuming complete oxidation for combustion and complete conversion for all other chemical reactions” were omitted; (b) Article 27 is to be read as if: (i) paragraph 1(b) were omitted; (ii) paragraph 2 were omitted; (c) Article 30 is to be read as if in paragraph 2 in the first subparagraph the reference to fuel included a reference to vented emissions; (d) Article 31 is to be read as if in paragraph 1(e) for “batches of the same fuel or material” there were substituted “vented emissions”; (e) Article 32 is to be read as if: (i) in paragraph 2 the reference to fuels included a reference to vented emissions; (ii) in paragraph 3 for “delivery period or batch of fuel or material” there were substituted “period of release of vented emissions”; (f) Article 33 is to be read as if: (i) in paragraph 1: (aa) in the first subparagraph for “each fuel or material” there were substituted “vented emissions”; (bb) in the second subparagraph for “batch or delivery period” there were substituted “period of release of vented emissions”; (cc) in the second subparagraph for “the respective fuel or material” there were substituted “vented emissions”; (ii) in paragraph 2: (aa) for “the respective fuel or material” there were substituted “vented emissions”; (bb) for “the fuel or material” there were substituted “the vented emissions”; (cc) for “that specific fuel or material” there were substituted “those vented emissions”; (g) Article 35 is to be read as if: (i) in paragraph 1 for “relevant fuels or materials” there were substituted “vented emissions”; (ii) in paragraph 2 in the first subparagraph in point (a): (aa) for “the respective fuels or materials” there were substituted “vented emissions”; (bb) for “the respective fuel or material” there were substituted “vented emissions”; (cc) for “the relevant fuel or material” there were substituted “vented emissions”; (iii) in paragraph 2 in the second subparagraph for “Where an installation operates for part of the year only, or where fuels or materials are delivered in batches that are consumed over more than one calendar year” there were substituted “Where vented emissions are not released continuously”; (h) Article 36 is to be read as if after paragraph 3 there were inserted: (4) Emission factors of vented emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) shall be expressed as t CO₂/t or t CO₂/Nm³. (i) Annex 2 is to be read as if: (i) in section 1 in Table 1 (tiers for activity data (maximum permissible uncertainty for each tier)) after the last row there were inserted:

Activity/source stream type	Parameter to which the uncertainty is applied	Tier 1	Tier 2	Tier3
“Vented emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order)	Amount of vented emissions [t] or [Nm³]	± 17.5%	± 12.5 %	± 7.5%”;

(ii) after section 4 there were inserted:
  (5) DEFINITION OF TIERS FOR EMISSION FACTORS FOR VENTED EMISSIONS FROM UPSTREAM GHG REMOVAL
    Operators shall monitor vented CO₂ emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) using the tier definitions for emission factors laid down in this section.
    **Tier 1:** The operator shall derive emission factors for vented emissions based on a proxy agreed with the regulator, in combination with an empirical correlation as determined at least once per year in accordance with Articles 32 to 35.
    The operator shall ensure that the correlation satisfies the requirements of good engineering practice and that it is applied only to values of the proxy which fall into the range for which it was established.
    **Tier 2:** The operator shall apply one of the following:
    (a) determination of the emission factor in accordance with the relevant provisions of Articles 32 to 35;
    (b) the empirical correlation as specified for Tier 1, where the operator demonstrates to the satisfaction of the regulator that the uncertainty of the empirical correlation does not exceed 1/3 of the uncertainty value to which the operator has to adhere with regard to the activity data determination of the vented emissions.

(j) Annex 5 is to be read as if in Table 1 (minimum tiers to be applied for calculation-based methodologies in the case of category A installations, etc.) after the last row there were inserted:

	Activity data	Activity data	Emissionfactor	Composition data(carbon content)	Oxidationfactor	Conversion factor
Activity/Source stream type	Amount of fuel or material	Net calorific value	Emissionfactor	Composition data(carbon content)	Oxidationfactor	Conversion factor
*“Upstream GHG removal*	*“Upstream GHG removal*	*“Upstream GHG removal*	*“Upstream GHG removal*	*“Upstream GHG removal*	*“Upstream GHG removal*	*“Upstream GHG removal*
Vented emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order)	1	n.a.	1	n.a.	n.a.	n.a.”;

(k) Annex 7 (minimum frequency of analyses) is to be read as if in the table after the last row there were inserted:

Fuel/material	Minimum frequency of analyses
“Vented emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order)	At least weekly”

39

Section 2(7) of Annex 9 is to be read as if—

(a) in point (c)—

(i) after “storage permit”, there were inserted “ for the storage site ”;

(ii) for “Article 9 of Directive 2009/31/EC” there were substituted “ the CCS licensing regime ”;

(b) in each of points (d), (e) and (f), after “with”, there were inserted “ domestic legislation which immediately before IP completion day implemented ”.

40

Annex 10 is to be read as if—

(a) in the heading, for “68(3)” there were substituted “ 68 ”;

(b) in section 1—

(ai) for point (1) there were substituted—

(1) Name and address of the installation and details of the following: (a) type and number of regulated activities carried out at the installation; (b) address, telephone number and email address of two contact persons; (c) name of the operator of the installation; (d) permit number;

(i) in point (6), for “Information” there were substituted “ Subject to the subparagraph after point (13), information ”;

(ia) in point (8)(g) for “as recognised in accordance with the acts adopted pursuant to Article 19(3) of Directive 2003/87/EC” there were substituted “in the registry”;

(ii) in the subparagraph after point (13), at the end there were inserted “Emissions occurring from marginal source streams may be reported in an aggregate manner.”;

(iii) in the final subparagraph, after “with”, there were inserted “ domestic legislation which immediately before IP completion day implemented ”;

(i) in point (1), after “Directive 2003/87/EC”, there were inserted “(read as if references in that Annex to “its administering Member State” and “in the administering Member State” were omitted and as if references to “aviation activities listed in Annex I” were references to “aviation activity”)”;

(ii) in point (6), for “aviation activities covered by Annex I to Directive 2003/87/EC” there were substituted “ aviation activity ”;

(iii) in point (9), for “Member State” there were substituted “ state ”;

(iiia) for point (12) there were substituted—

(12) Memo-items: (a) amount of biofuels used during the reporting year (in tonnes or m³) listed per fuel type, and whether the biofuels meet the sustainability criteria (as defined in Article 54(6)); (b) the net calorific value of biofuels and alternative fuels;

(iv) in point (13), for “operator” in both places it occurs there were substituted “ aircraft operator ”;

(d) in section 3—

(i) in point (1), after “Directive 2003/87/EC”, there were inserted “(read as if references in that Annex to “its administering Member State” and “in the administering Member State” were omitted and as if references to “aviation activities listed in Annex I” were references to “aviation activity”)”;

(ii) in point (6), for “aviation activities covered by Annex I to Directive 2003/87/EC” there were substituted “ aviation activity ”;

(iii) in point (8), for “aviation activities listed in Annex I of Directive 2003/87/EC” there were substituted “ aviation activity ”.

SCHEDULE 5 — Modifications to Verification Regulation 2018

1

The Verification Regulation 2018 is to be read as if—

(a) for “…/…” in each place there were substituted “ 2019/331 ”;

(b) for “competent authority” in each place there were substituted “ regulator ”;

(d) the words “This Regulation shall be binding in its entirety and directly applicable in all Member States”, immediately following Article 79, were omitted,

and subject to the following additional modifications.

2

Article 1 is to be read as if—

(a) in the first subparagraph for “Directive 2003/87/EC” there were substituted “ the 2020 Order, Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 ”;

(b) the second subparagraph were omitted.

3

Article 2 is to be read as if for “2019, reported pursuant to Article 14 of Directive [2003/87/EC](https://www.legislation.gov.uk/eudr/2003/87)” there were substituted “ 2021, reported pursuant to the 2020 Order and permits issued in accordance with it ”.

4

Article 3 is to be read as if—

(a) for the words before point (1) there were substituted—

In this Regulation, references to Implementing Regulation (EU) 2018/2066 are to that Regulation as modified by the Greenhouse Gas Emissions Trading Scheme Order 2020 (“the modified MRR”) and expressions used in both the modified MRR and this Regulation have the same meaning in this Regulation as they do in the modified MRR; in addition the following definitions apply for the purposes of this Regulation:

(b) in point (2)—

(i) for “a national” there were substituted “ the national ”;

(ii) for “harmonised standards, within the meaning of point 9 of Article 2 of Regulation (EC) No 765/2008,” there were substituted the standard referred to in Annex 2;

(ai) “or another legal entity” were omitted;

(i) for “a national” there were substituted “ the national ”;

(ii) the words “or a natural person otherwise authorised, without prejudice to Article 5(2) of that Regulation,” were omitted;

(d) after point (3) there were inserted—

(3a) ‘national accreditation body’ means the national accreditation body of the United Kingdom appointed in accordance with Article 4(1) of Regulation (EC) 765/2008;

(e) after point (4) there were inserted—

(4a) ‘Delegated Regulation (EU) 2019/331’ means the Free Allocation Regulation (as defined in the 2020 Order); (4b) ‘Implementing Regulation (EU) 2019/1842’ means the Activity Level Changes Regulation (as defined in the 2020 Order);

(f) after point (6) there were inserted—

(6a) ‘annual activity level report’ means a report submitted by an operator pursuant to Article 3(3) of Implementing Regulation (EU) 2019/1842;

(g) for point (7) there were substituted—

(7) ‘operator's or aircraft operator's report’ means the annual emission report to be submitted by the operator or aircraft operator pursuant to a permit issued in accordance with Schedule 6 or 7 to the 2020 Order or pursuant to article 33 of the 2020 Order, the baseline data report submitted by the operator pursuant to Article 4(2) of Delegated Regulation (EU) 2019/331, the new entrant data report submitted by the operator pursuant to Article 5(5) of that Regulation or the annual activity level report;

(h) in point (13)—

(i) in paragraph (a) “greenhouse gas emissions” were omitted;

(ii) for paragraph (c) there were substituted—

(c) for the purposes of verifying the baseline data report submitted by the operator pursuant to Article 4(2)(a) of Delegated Regulation (EU) 2019/331, the new entrant data report submitted by the operator pursuant to Article 5(5) of that Regulation or the annual activity level report, any act or omission of an act by the operator that is contrary to the requirements in the monitoring methodology plan;

(i) in points (22) and (23) for “EU” in each place there were substituted “ UK ”;

(j) in point (22) for “an” in the first place it occurs there were substituted “ a ”;

(k) in point (26) for “a” in the second place it occurs there were substituted “ the ”;

(l) after point (27) there were inserted—

(27a) ‘monitoring methodology plan’ has the same meaning as in Delegated Regulation (EU) 2019/331;

(m) after point (28) there were inserted—

(28a) ‘baseline period’ has the same meaning as in Delegated Regulation (EU) 2019/331;

(n) after point (29) there were inserted—

(30) ‘activity level reporting period’ means the applicable period preceding the submission of the annual activity level report pursuant to Article 3(1) of Implementing Regulation (EU) 2019/1842.

5

Article 4 is to be read as if—

(a) for the words from “the relevant harmonised standards” to “European Union” there were substituted the standard referred to in Annex 2;

(b) for “the applicable harmonised standards” there were substituted “ those standards ”.

6

Article 5 is to be read as if for “bodies” there were substituted “ body ”.

7

Article 6 is to be read as if for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”.

8

Article 7 is to be read as if—

(a) in paragraph 3 for “competent authorities responsible for Directive 2003/87/EC” there were substituted “ regulator ”;

(b) in paragraph 4—

(i) in point (a) for the words from “or in Annex IV” to the end there were substituted “ , in Annex IV to Delegated Regulation (EU) 2019/331 or in Article 3(2) of Implementing Regulation (EU) 2019/1842, as appropriate; ”;

(ii) in point (b) “greenhouse gas emissions” were omitted;

(iii) in point (c) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(c) in paragraph 5 for the words from “or with” to “that irregularity” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842, that irregularity ”;

(d) in paragraph 6 for the second subparagraph there were substituted—

If the monitoring methodology plan has not been approved by the regulator pursuant to Article 8 of Delegated Regulation (EU) 2019/331 or is incomplete, or if significant modifications referred to in Article 9(5) of that Regulation have been made which have not been approved by the regulator, the verifier must advise the operator to obtain the necessary approval from the regulator.

9

Article 10 (1) is to be read as if—

(a) in point (a) “greenhouse gas emissions” were omitted;

(b) in point (h) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(c) in point (i) for the words from “and annual” to the end there were substituted “ under Directive 2003/87/EC and any previous allocation periods under the UK ETS, together with annual activity level reports of the previous years submitted to the competent authority for the purposes of Implementing Regulation (EU) 2019/1842 ”;

(d) after point (k) there were inserted—

(ka) if the monitoring methodology plan was modified, a record of all modifications in accordance with Article 9 of Delegated Regulation (EU) 2019/331;

(e) in point (l) for “report referred to in Article 69(4)” there were substituted “ reports referred to in Article 69(1) and (4) ”;

(f) after point (l) there were inserted—

(la) where applicable, information on how the operator has corrected nonconformities or addressed recommendations of improvements that were reported in the verification report concerning an annual activity level report from the previous year or a relevant baseline data report;

(g) in point (n) after “methodology plan” there were inserted “ as well as corrections of reported data ”;

(h) in point (p)—

(i) for “Directive 2009/31/EC” there were substituted “ the CCS licensing regime ”;

(ii) for “required by that Directive and the reports required by Article 14 of that Directive” there were substituted “ and reports required by that regime ”.

10

Article 11 (4) is to be read as if—

(a) in point (b) the words from “or” to the end were omitted;

(b) after point (b) there were inserted—

(ba) whether there have been any modifications to the monitoring methodology plan during the baseline period or the activity level reporting period, as appropriate;

(c) in point (c) for the words from “notified” to the end there were substituted “ notified to and, if required, approved by the regulator pursuant to Part 4 of or Schedule 6 to the 2020 Order ”;

(d) in point (d) for the words from “point (b)” to the end there were substituted “ point (ba) have been notified to and, if required, approved by the regulator pursuant to Schedule 6 to the 2020 Order ”.

11

Article 13 (1)(c) is to be read as if for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”.

12

Article 16 (2) is to be read as if—

(a) in point (b) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(b) in point (c) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(d) after point (f) there were inserted—

(fa) for the purposes of verifying an annual activity level report, the accuracy of the parameters listed in Article 16(5), 19, 20, 21 or 22 of Delegated Regulation (EU) 2019/331 as well as data required under paragraphs 1, 2 and 4 of Article 6 of Implementing Regulation (EU) 2019/1842;

13

Article 17 is to be read as if—

(a) in paragraph 3—

(i) in the words before point (a) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(ii) in point (d) for “delegated acts adopted pursuant to Article 10b(5) of Directive 2003/87/EC” there were substituted “ Commission Delegated Decision (EU) 2019/708 ”;

(iii) at the end there were inserted—

(e) whether the energy consumption has been correctly attributed to each sub-installation where applicable; (f) whether the value of the parameters listed in Articles 16(5), 19, 20, 21 or 22 of Delegated Regulation (EU) 2019/331 is based on a correct application of that Regulation; (g) for the purposes of verifying an annual activity level report and a new entrant data report, the date of start of normal operation as referred to in Article 5(5) of Delegated Regulation (EU) 2019/331; (h) for the purposes of verifying an annual activity level report whether the parameters listed in points 2.3 to 2.7 of Annex IV to Delegated Regulation (EU) 2019/331, as appropriate to the installation, have been monitored and reported in the correct way in accordance with the monitoring methodology plan.

(b) in paragraph 4 after “is not counted” there were inserted “ as emitted ”;

14

Article 18 is to be read as if for paragraph 3 there were substituted—

(3) Where data gaps in baseline data reports, new entrant data reports or annual activity level reports have occurred, the verifier shall check whether methods are laid down in the monitoring methodology plan to deal with data gaps pursuant to Article 12 of Delegated Regulation (EU) 2019/331, whether those methods were appropriate for the specific situation and whether they have been applied correctly. Where no applicable data gap method is laid down in the monitoring methodology plan, the verifier shall check whether the approach used by the operator to compensate for the missing data is based on reasonable evidence and ensures that the data required by Annex IV to Delegated Regulation (EU) 2019/331 or Article 3(2) of Implementing Regulation (EU) 2019/1842 are not underestimated or overestimated.

15

Article 21 is to be read as if—

(a) in paragraph 4 for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(b) in paragraph 5 for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”.

16

Article 22 is to be read as if—

(a) in paragraph 1—

(i) in the first subparagraph for the words from “or Delegated” to “as appropriate” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 as appropriate ”;

(ii) in the third subparagraph for the words from “or Delegated” to “has been identified” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 has been identified ”;

(b) in paragraph 2 for the words from “or Delegated” to “that have” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 that have ”;

(c) in paragraph 3 in the fourth subparagraph for the words from “or Delegated” to “in accordance” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 in accordance ”.

17

Article 23 (4) is to be read as if in the words before point (a) for “or new entrant data reports” there were substituted “ , new entrant data reports or annual activity level reports ”.

18

Article 27 is to be read as if—

(a) in paragraph 1 in the words before point (a) for “or new entrant data report” there were substituted “ , new entrant data report or annual activity level report ”;

(b) in paragraph 3—

(i) for point (f) there were substituted—

(f) in the case of verification of a baseline data report or new entrant data report, unless the monitoring methodology plan has already been approved by the regulator, the verifier's confirmation that the monitoring methodology plan, so far as it is used as a basis for the report, is compliant with Delegated Regulation (EU) 2019/331;

(ii) in point (g) for “per activity referred to in Annex 1 to Directive 2003/87/EC and per installation or aircraft operator” there were substituted “ per regulated activity and per installation or per aviation activity and per aircraft operator ”;

(iii) after point (h) there were inserted—

(ha) where it concerns the verification of the annual activity level report, aggregated annual verified data for each year in the activity level reporting period for each sub-installation for its annual activity level;

(iv) in point (i) for “or baseline period” there were substituted “ , baseline period or activity level reporting period ”;

(v) for point (o) there were substituted—

(o) any issues of non-compliance with Implementing Regulation (EU) 2018/2066, Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 which have become apparent during the verification;

(vi) point (r) were omitted;

(vii) after point (s) there were inserted—

(sa) where the verifier has observed relevant changes to the parameters listed in Article 16(5), 19, 20, 21 or 22 of Delegated Regulation (EU) 2019/331 or changes in the energy efficiency pursuant to paragraphs 1, 2 and 3 of Article 6 of Implementing Regulation 2019/1842, a description of those changes and related remarks; (sb) where applicable, confirmation that the date of start of normal operation as referred to in Article 5(5) of Delegated Regulation (EU) 2019/331 has been checked;

(viii) in point (t) for “EU” in both places there were substituted “ UK ”;

(i) in the words before point (a), for “or Delegated” to “in sufficient detail” there were substituted “ , Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 in sufficient detail ”;

(ii) for point (a) there were substituted—

(a) the size and nature of the misstatement, non-conformity or non-compliance with Implementing Regulation (EU) 2018/2066, Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842;

(iii) for point (d) there were substituted—

(d) to which Article in Implementing Regulation (EU) 2018/2066, Delegated Regulation (EU) 2019/331 or Implementing Regulation (EU) 2019/1842 the non-compliance relates.

(d) paragraph 5 were omitted.

19

Article 28 is to be read as if point (e) were omitted.

20

Article 29 is to be read as if after paragraph 1 there were inserted—

(1A) For the purposes of the verification of the annual activity level report, the verifier shall assess whether the operator has corrected the non-conformities indicated in the verification report related to the corresponding baseline data report, the new entrant data report or the annual activity level report from the previous activity level reporting period. If the operator has not corrected those non-conformities, the verifier shall consider whether the omission increases or may increase the risk of misstatements. The verifier shall report in the verification report whether those non-conformities have been resolved by the operator.

21

Article 30 (1)(e) is to be read as if for “and new entrant reports” there were substituted “ , new entrant data reports and annual activity level reports ”.

22

Article 31 is to be read as if—

(a) in paragraph 1—

(i) for “a” in the first place it occurs there were substituted “ the ”;

(ii) in point (c) after “paragraph 3” there were inserted “ , read with paragraph 3b, ”;

(b) in paragraph 3—

(i) in point (a) after “emission report” there were inserted “ or annual activity level report ”;

(ii) in point (b) at the beginning there were inserted “for the purposes of verifying the operator's emission report,”;

(iii) after point (b) there were inserted—

(ba) for the purposes of verifying the operator's annual activity level report, if a verifier has not carried out a site visit during the verification of an annual activity level report or a baseline data report in the two activity level reporting periods immediately preceding the current activity level reporting period;

(iv) after point (c) there were inserted—

(ca) if, during the activity level reporting period, there have been significant changes to the installation or its sub-installations which require significant modifications to the monitoring methodology plan, including those changes referred to in Article 9(5) of Delegated Regulation (EU) 2019/331;

(3A) The reference in point (b) of paragraph 3 to reporting periods immediately preceding the current reporting period includes reporting periods for the purposes of Directive 2003/87/EC. (3B) In respect of installations within Article 32(5), points (b) and (ba) of paragraph 3 apply as if, in each of those points, for “two” there were substituted “ four ”.

(d) for paragraph 4 there were substituted—

(4) Points (c) and (ca) of paragraph 3 are not applicable where, during the reporting period, there have been only modifications of the default value as referred to in Article 15(3)(h) of Implementing Regulation (EU) 2018/2066 or Article 9(5)(c) of Delegated Regulation (EU) 2019/331.

23

Article 32 is to be read as if—

(a) in point (1) after “verification” there were inserted “ of an operator's emission report ”;

(b) in point (2) after “verification” there were inserted “ of an operator's emission report ”;

(d) after point (3) there were inserted—

(3a) the verification of an operator's annual activity level report concerns a category A installation referred to in Article 19(2)(a) of Implementing Regulation (EU) 2018/2066, a category B installation referred to in Article 19(2)(b) of that Implementing Regulation or an installation with low emissions as referred to in Article 47(2) of that Implementing Regulation and: (a) that installation's only sub-installation is one to which a product benchmark pursuant to Article 10(2) of Delegated Regulation (EU) 2019/331 is applicable; and (b) the production data relevant for the product benchmark has been evaluated as part of an audit for financial accounting purposes and the operator provides evidence of that; (3b) the verification of an operator's annual activity level report concerns a category A installation referred to in Article 19(2)(a) of Implementing Regulation (EU) 2018/2066, a category B installation referred to in Article 19(2)(b) of that Implementing Regulation or an installation with low emissions as referred to in Article 47(2) of that Implementing Regulation and: (a) the installation has no more than two sub-installations; (b) if the installation has two sub-installations, one contributes less than 5% to the installation's total final allocation of allowances; and (c) the verifier has sufficient data available to assess the split of sub-installations if relevant; (3c) the verification of an operator's annual activity level report concerns a category A installation referred to in Article 19(2)(a) of Implementing Regulation (EU) 2018/2066, a category B installation referred to in Article 19(2)(b) of that Implementing Regulation or an installation with low emissions as referred to in Article 47(2) of that Implementing Regulation and: (a) the installation has only heat benchmark or district heating sub-installations; and (b) the verifier has sufficient data available to assess the split of sub-installations if relevant;

(e) in point (4)—

(i) in the words before point (a) after “verification” there were inserted “ of the operator's emission report or annual activity level report ”;

(ii) in paragraph (c) after “2018/2066” there were inserted “ or Article 11 of Delegated Regulation (EU) 2019/331 ”;

(f) in point (5)—

(i) in the words before point (a) after “verification” there were inserted “ of the operator's emission report or annual activity level report ”;

(ii) in paragraph (b) after “2018/2066” there were inserted “ or Article 11 of Delegated Regulation (EU) 2019/331 ”;

(g) at the end there were inserted—

Point (3b) may not be applied if the sub-installation contributing 95% or more to the installation's total final allocation of allowances is a sub-installation to which a product benchmark pursuant to Article 10(2) of Delegated Regulation (EU) 2019/331 is applicable, unless the production data relevant for the product benchmark has been evaluated as part of an audit for financial accounting purposes and the operator provides evidence of that.

24

The Verification Regulation 2018 is to be read as if after Article 34 there were inserted—

Where serious, extraordinary and unforeseeable circumstances, outside the control of the operator ..., prevent the verifier from carrying out a physical site visit in accordance with Article 21(1) and where these circumstances cannot, after using all reasonable efforts, be overcome, the verifier may decide, subject to the approval of the regulator in accordance with the second and third subparagraph of this Article, to carry out a virtual site visit. The verifier shall take measures to reduce the verification risk to an acceptable level and carry out a physical visit to the site of the installation ... without undue delay. The decision to carry out a virtual site visit shall be based on the outcome of the risk analysis and after determining that the conditions for carrying out a virtual site visit are met. The verifier shall inform the operator ... thereof without undue delay. The operator ... shall submit an application to the regulator requesting the regulator to approve the verifier's decision to carry out a virtual site visit. On an application submitted by the operator ... concerned, the regulator shall decide whether to approve the verifier's decision to carry out a virtual site visit, taking into consideration all of the following elements: (a) evidence that it is not possible to carry out a physical site visit because of the force majeure circumstances; (b) the information provided by the verifier on the outcome of the risk analysis; (c) information on how the virtual site visit will be carried out; (d) evidence that measures are taken to reduce the verification risk to an acceptable level. (1) For the purpose of verifying the report of an aircraft operator (other than a small emitter referred to in Article 55(1) of Implementing Regulation (EU) 2018/2066), the verifier may, with the agreement of the aircraft operator and subject to the approval of the regulator in accordance with paragraph 4, carry out a virtual site visit instead of carrying out a physical site visit in accordance with Article 21(1). (2) Before any virtual site visit, the verifier must undertake a risk analysis that includes considering measures to reduce the verification risk to an acceptable level to obtain reasonable assurance that the aircraft operator’s report is free from material misstatements. (3) An application for the regulator’s approval for a virtual site visit must be submitted by an aircraft operator on or before 28 February in the year after the scheme year to which the aircraft operator’s report relates or such later date as the regulator may specify. (4) On an application being submitted, the regulator must take the following into consideration in deciding whether or not to approve the virtual site visit: (a) the information provided by the verifier on the outcome of the risk analysis; (b) information on how the virtual site visit will be carried out; (c) evidence that measures are taken to reduce the verification risk to an acceptable level; (d) any proposal to carry out a physical site visit after the virtual site visit; (e) any other information requested by the regulator to enable the regulator to decide whether or not to approve the virtual site visit. (5) When approving a virtual site visit, the regulator may impose conditions on the approval (including a condition that a physical site visit be carried out within a period specified by the regulator); and the aircraft operator must ensure that any conditions are complied with.

25

Article 36 is to be read as if—

(a) in paragraphs 2(b) and 6 for “EU” in each place there were substituted “ UK ”;

(b) in paragraph 6 for “an” there were substituted “ a ”.

26

Article 37 is to be read as if—

(a) in paragraph 2 for “an” there were substituted “ a ”;

(b) in paragraphs 2 and 6 for “EU” in each place there were substituted “ UK ”;

(i) in the first subparagraph the second sentence were omitted;

(ii) in the second subparagraph for “and new entrant data reports” there were substituted “ , new entrant data reports or annual activity level reports ”.

SCHEDULE 6 — Permits

PART 1 — Application for greenhouse gas emissions permits

Greenhouse gas emissions permits: application

1

(1) The operator of an installation may apply to the regulator for a greenhouse gas emissions permit for the installation .

(2) But an application may not be made if a permit for the installation is already in force.

(3) In sub-paragraph (2), “permit” includes a permit within the meaning of GGETSR 2012 to which paragraph 1 of Schedule 11 applies (permits to be converted).

Greenhouse gas emissions permits: content of application

2

(1) An application for a greenhouse gas emissions permit must contain—

(a) an address to which correspondence relating to the application should be sent (in addition to the addresses required by paragraph 1(5) of Schedule 3);

(b) if the operator of the installation is a body corporate—

(i) its registered number and the postal address of its registered or principal office; and

(ii) where the operator is a subsidiary of a holding company, the name of the holding company (other than a holding company which is itself a subsidiary) and the postal address of the holding company's registered or principal office,

and in this paragraph “subsidiary” and “holding company” have the meanings given in section 1159 of the Companies Act 2006 ;

(i) the postal address and national grid reference of the site (or in the case of an installation in UK coastal waters or the UK sector of the continental shelf equivalent information identifying the installation and its location);

(ii) a description of the site and the location of the installation on it; and

(iii) the name of any local authority where the site is situated;

(d) a description of the installation, the regulated activities to be carried out at the installation and the specified emissions from those activities;

(e) a description of the raw and auxiliary materials used in carrying out regulated activities at the installation, the use of which is likely to lead to specified emissions;

(f) a description of the sources of specified emissions from the regulated activities carried out at the installation;

(g) a monitoring plan in accordance with Article 12 of the Monitoring and Reporting Regulation 2018, together with—

(i) the supporting documents referred to in Article 12(1) of that Regulation;

(ii) except where the installation is an installation with low emissions within the meaning of Article 47(2) of that Regulation, the uncertainty assessment carried out under Article 28(1)(a) of that Regulation;

(h) a description, including the reference number, of any environmental licence issued in relation to the installation;

(i) any additional information that the operator wishes the regulator to take into account in considering the application;

(j) a non-technical summary of the information referred to in paragraphs (d) to (i); and

(k) the date on which the operator wishes the permit to come into force.

(2) In sub-paragraph (1)(h), “environmental licence” means—

(a) an authorisation under—

(i) Part 1 of the Environmental Protection Act 1990 ;

(ii) the Industrial Pollution Control (Northern Ireland) Order 1997 ;

(b) a permit under—

(i) the Pollution Prevention and Control (Scotland) Regulations 2012 ;

(ii) the Offshore Combustion Installations (Pollution Prevention and Control) Regulations 2013 ;

(iii) the Pollution Prevention and Control (Industrial Emissions) Regulations (Northern Ireland) 2013 ;

(iv) the Environmental Permitting (England and Wales) Regulations 2016 ;

(v) the Environmental Authorisations (Scotland) Regulations 2018 .

Greenhouse gas emissions permits: issue of permit

3

A greenhouse gas emissions permit for an installation may be issued only if—

(a) a monitoring plan has been approved in relation to the installation under the Monitoring and Reporting Regulation 2018; and

(b) the regulator considers that from the date on which the permit comes into force the operator of the installation will be capable of monitoring and reporting the installation’s reportable emissions in accordance with the monitoring and reporting conditions of the permit.

Greenhouse gas emissions permits: content of permit

4

(1) A greenhouse gas emissions permit must contain—

(a) the name and postal address in the United Kingdom (including postcode) of the operator and any other address for correspondence included by the operator in the application;

(b) the postal address and national grid reference of the installation (or, in the case of an installation in UK coastal waters or the UK sector of the continental shelf, equivalent information identifying the installation and its location);

(c) a description of the installation, the regulated activities to be carried out at the installation and the specified emissions from those activities;

(d) a description of the site and the location of the installation on the site;

(e) the date on which the permit comes into force;

(f) the monitoring plan—

(i) where an application is made for the permit, approved in relation to the installation under ...the Monitoring and Reporting Regulation 2018;

(ii) where an existing permit is converted into a greenhouse gas emissions permit, approved in relation to the installation under ...the Monitoring and Reporting Regulation 2012 or ... the Monitoring and Reporting Regulation 2018 for the purpose of monitoring specified emissions at the installation immediately before the greenhouse gas emissions permit comes into force;

(g) the monitoring and reporting conditions (see sub-paragraph (2));

(h) the surrender condition (see sub-paragraph (3));

(ha) the free allocation conditions (see sub-paragraph (6));

(hb) where a monitoring methodology plan has been approved in relation to the installation under Article 8 of the Free Allocation Regulation, the monitoring methodology plan;

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

(i) any conditions that the regulator considers necessary to ensure that the operator notifies the regulator of any planned or effective changes to the capacity, activity level or operation of the installation, on or before 31st December in the year in which the change is planned or occurs;

(j) any other conditions that the regulator considers appropriate to include in the permit.

(2) The monitoring and reporting conditions are—

(a) a condition requiring the operator to monitor the installation's reportable emissions in accordance with—

(i) the Monitoring and Reporting Regulation 2018; and

(ii) the monitoring plan (including the written procedures supplementing the monitoring plan);

(b) a condition requiring the operator to prepare in accordance with the Monitoring and Reporting Regulation 2018 a report of the installation's reportable emissions in each scheme year that is verified as satisfactory in accordance with the Verification Regulation 2018 and to submit the report (and the verification report) to the regulator on or before 31st March in the following year;

(d) any further conditions that the regulator considers necessary to give proper effect to the Monitoring and Reporting Regulation 2018 or the Verification Regulation 2018.

(3) The surrender condition is a condition requiring the operator to surrender allowances equal to the installation's reportable emissions in a scheme year on or before 30th April in the following year.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The free allocation conditions are the following conditions, which must be expressed to apply while the installation is an FA installation 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—

(a) a condition requiring the operator to monitor the activity level of the installation in accordance with—

(i) the Free Allocation Regulation; and

(ii) the monitoring methodology plan approved under Article 8 of the Free Allocation Regulation (including the written documentation of the procedures referred to in Article 8(3) of that Regulation);

(b) a condition requiring the operator, in accordance with the Activity Level Changes Regulation, to prepare an activity level report that is verified as satisfactory in accordance with the Verification Regulation 2018 and to submit the report (and the verification report) to the regulator—

(i) on or before 31st March in each scheme year; or

(ii) in the case of an installation in relation to which the Activity Level Changes Regulation has effect with the modifications referred to in paragraph 5 of Schedule 8A—

(aa) on or before 31st March in the first eligible scheme year (within the meaning of that Schedule) or, if later, within 3 months after the date on which the final annual number of allowances to be allocated in respect of the installation is approved under paragraph 4(6) of that Schedule;

(bb) on or before 31st March in each subsequent scheme year;

(d) any further conditions that the regulator considers necessary to give proper effect to the Free Allocation Regulation or the Activity Level Changes Regulation.

(7) Where, after the date of issue of, or conversion of a permit into, a greenhouse gas emissions permit, a monitoring methodology plan is approved in relation to an installation under Article 8 of the Free Allocation Regulation, the regulator must vary the permit under paragraph 6 so that it contains the monitoring methodology plan.

(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.

Greenhouse gas emissions permits: effect of permit, etc.

5

(1) A greenhouse gas emissions permit for an installation—

(a) comes into force on the date set out in the permit;

(b) authorises the regulated activities set out in the permit to be carried out at the installation.

(2) The operator of the installation must comply with the conditions of the permit.

PART 2 — Greenhouse gas emissions permits and hospital or small emitter permits

Variation of permits

6

(1) The operator of an installation—

(a) may apply to the regulator to vary the installation's permit;

(b) must apply to the regulator to vary the installation's permit where required by a condition of the permit;

(c) must apply to the regulator to vary the installation's permit in consequence of the requirement in Article 9(2a) of the Free Allocation Regulation to modify the monitoring methodology plan.

(2) The regulator may vary an installation's permit at any time if the regulator considers that it is necessary to do so for the purposes of the UK ETS and in particular may do so in consequence of any of the following—

(a) a report of the operator referred to in Article 69 of the Monitoring and Reporting Regulation 2018;

(b) a notification under a condition included under paragraph 4(1)(i) (notification of planned changes in operation);

(d) a failure by the operator to implement—

(i) a recommendation for improvement of the monitoring methodology plan as required by Article 9(2)(e) of the Free Allocation Regulation; or

(ii) a modification of the monitoring methodology plan requested by the regulator under Article 9(5)(d) of that Regulation.

(3) The regulator may vary a permit to comply with—

(za) paragraph 4(7) (adding monitoring methodology plan);

(a) paragraph 9(3), (3A), (4) or (5) (transfer of permits);

(b) any of the following provisions of Schedule 7—

(i) paragraph 10 (conversion of permit to hospital or small emitter permit);

(ii) paragraph 18 (calculation of later emissions targets where initial targets based on estimates);

(iia) paragraph 19C (capacity increases);

(iii) paragraph 20 (banking overachieved target);

(iv) paragraph 21 (emissions targets for 2026-2030 ... period);

(v) paragraph 24 (conversion of permit on loss of hospital or small emitter status);

(vi) paragraph 26 (conversion of permit at end of 2021-2025 allocation period).

(4) The variation of an installation's permit is given effect by the regulator giving a notice to the operator of the installation setting out the variations to the permit.

(5) Where a permit is varied, the regulator may, by giving notice to the operator, replace the permit with a consolidated version that includes the variations.

Transfer of permits: application

7

(1) Subject to sub-paragraphs (3) and (4), a permit holder (the “transferring operator”) and another person (the “new operator”) may jointly apply to the regulator—

(a) for the transfer of the permit to the new operator;

(b) for the partial transfer of the permit to the new operator.

(2) For the purposes of this Order, the partial transfer of a permit is the transfer in respect of part of the installation at which the permit authorises a regulated activity to be carried out.

(3) An application for the transfer or partial transfer of a permit may not be made in respect of an installation (or part of an installation) 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.

(4) An application may not be made for the partial transfer of a hospital or small emitter permit.

(5) In this paragraph and paragraphs 8 to 10—

“existing permit” has the meaning given in paragraph 9(3A) or (5);

“new operator” has the meaning given in sub-paragraph (1);

“transferred activities” has the meaning given in paragraph 8(1)(a);

“transferred units” has the meaning given in paragraph 8(1)(a);

“transferring operator” has the meaning given in sub-paragraph (1).

Transfer of permits: contents of application

8

(1) An application for the transfer or partial transfer of a permit must contain—

(a) a description of the installation (or part of an installation) in respect of which the application is made (the “transferred units”) and of the regulated activities authorised to be carried out there (the “transferred activities”);

(b) in relation to both the transferring operator and the new operator, an address to which correspondence relating to the application should be sent (in addition to the addresses required by paragraph 1(5) of Schedule 3);

(c) if the new operator is a body corporate, the matters referred to in paragraph 2(1)(b) in relation to the new operator;

(d) either—

(i) the new operator's monitoring plan in accordance with Article 12 of the Monitoring and Reporting Regulation 2018, together with—

(aa) the supporting documents referred to in Article 12(1) of that Regulation;

(bb) except where the transferred units are an installation with low emissions within the meaning of Article 47(2) of that Regulation, the uncertainty assessment carried out under Article 28(1)(a) of that Regulation; or

(ii) the new operator's specification of the parts of the existing monitoring plan that it is proposed be varied and any necessary corresponding update of the supporting documents and any uncertainty assessment;

(e) in the case of an application for a partial transfer of a permit, the transferring operator's specification of the parts of the existing monitoring plan that it is proposed be varied and any necessary corresponding update of the supporting documents and any uncertainty assessment.

(1A) Where an application is made—

(a) the new operator’s monitoring plan referred to in sub-paragraph (1)(d)(i) must be treated as if it had been submitted to the regulator for approval under Article 12 of the Monitoring and Reporting Regulation 2018; or

(b) if sub-paragraph (1)(d)(ii) or (e) applies, the new or transferring operator’s specification of the parts of an existing monitoring plan that it is proposed be varied must be treated as a significant modification within the meaning of Article 15 of that Regulation notified to the regulator for approval under that Article.

(2) Where the application is for the transfer or partial transfer of a greenhouse gas emissions permit for an installation that is an FA installation, the application must also contain—

(a) either—

(i) the new operator's monitoring methodology plan in accordance with Article 8 of the Free Allocation Regulation; or

(ii) the new operator's specification of the parts of the existing monitoring methodology plan that it is proposed be varied;

(b) in the case of an application for the partial transfer of the permit, the transferring operator's specification of the parts of the existing monitoring methodology plan that it is proposed be varied.

(3) But sub-paragraph (2) does not apply if the application contains a statement by the new operator that the new operator renounces free allocation in respect of the transferred units.

(4) Where sub-paragraph (2) applies—

(a) the new operator’s monitoring methodology plan referred to in sub-paragraph (2)(a)(i) must be treated as if it had been submitted to the regulator for approval under Article 8 of the Free Allocation Regulation; or

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