Legalize / United Kingdom / Statutory-Instrument

The Vehicle Emissions Trading Schemes Order 2023

Type Statutory-Instrument

Publication 2023-12-13

Last updated 2026-01-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(h) “departing member” means a manufacturer which ceases to a member of a pool VRTS participant part-way through the trading period;

(i) “joining manufacturer” means a manufacturer which becomes a member of a pool VRTS participant part-way through the trading period;

(j) “in-year banked allowances”, in relation to a scheme year of pooling, means VRTS allowances which were available to a pool VRTS participant to account for its activity in the VRTS in accordance with article 59 for that scheme year of pooling, but which were not required by it in order to do so;

(k) “in-year borrowed allowances” means VRTS allowances which were borrowed by a pool VRTS participant in order to account for its activity in the VRTS for a particular scheme year of pooling.

Activity to which the VRTS applies and unit of measurement of activity

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(1) The activity to which the VRTS applies is the registration of an NZE van during the trading period.

(2) The unit of measurement of that activity is the registration of one NZE van.

Participants in the VRTS

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(1) The manufacturer of a van which is registered during a scheme year is a VRTS participant for that year, subject to paragraph (2).

(2) Two or more manufacturers of a van which is registered during a scheme year are a pool VRTS participant for that scheme year, where the administrator has granted an application made by those manufacturers under Schedule 5 (application by two or more manufacturers to be a pool participant in the Trading Schemes) for that scheme year which relates to the VRTS.

(3) A VRTS participant is a low-volume VRTS participant for a scheme year where that participant meets the criteria to be treated as a low-volume VRTS participant in accordance with Schedule 4.

(4) Where there is any doubt as to the identification of the manufacturer of a van in accordance with paragraphs (a) to (e) of the definition of “manufacturer” in article 3(1), the administrator may identify the VRTS participant in relation to the registration of that van.

VRTS allowances and limits on VRTS allowances and VRTS activity

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(1) A VRTS allowance is an allowance for the registration of one NZE van.

(2) The total amount of VRTS allowances which may be allocated for the trading period is limited in accordance with article 45.

(3) The total number of units of activity in the VRTS which may be accounted for by the surrender of a VRTS allowance or a VRTS credit in accordance with article 59 for the trading period is limited to the number which results from the following calculation.

Step 1Calculate the “relevant percentage” for each scheme year which is—for the 2024 scheme year and the 2025 scheme year, 100%;for the 2026 scheme year, the sum of—the percentage shown in column 2 of the Table in Part 2 of Schedule 6 (percentage of van registrations for calculating VRTS allowances) for that scheme year;the percentage shown in article 47(2) (limits on borrowed VRTS allowances) for that scheme year; andthe percentage shown in article 55(3) to (5) (limits on conversion of unused VCTS allowances into VRTS credits) for that scheme year; andfor the 2027 scheme year, the 2028 scheme year, the 2029 scheme year and the 2030 scheme year, the percentage shown in column 2 of the Table in Part 2 of Schedule 6 for that scheme year.

Step 2Calculate the number of vans registered during the trading period by a low-volume VRTS participant or by a VRTS participant described in article 45(4) or (6).

Step 3Calculate the total number of vans registered during the trading period, subtract from that number the number obtained at Step 2, and multiply the resulting number by the average of the relevant percentages obtained at Step 1.

Step 4Calculate the number which is equal to 2.5% of all the cars, vans and SPVs which are registered during the trading period.

Step 5Calculate the number of ZE SPVs of category N1, and ZE SPVs of category N2 which are within the description in paragraph (c) of the definition of “van” in article 3(1), of which an SPV van manufacturer is the manufacturer, which were to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date the SPV was registered and which were registered during the trading period, and multiply that number by 0.5.

Step 6Calculate the number of ZE SPVs of category N1, or of category N2 which fall within the description in paragraph (c) of the definition of “van” in article 3(1), which are registered during the trading period.

Step 7Add together the numbers which result from Steps 2 to 6.

Allocation of VRTS allowances

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(1) The administrator must allocate VRTS allowances in accordance with paragraphs (2) to (7) and subject to paragraph (8).

(2) Except where a VRTS participant falls within paragraph (3), or where paragraph (5) or (7) applies, the administrator must allocate to a VRTS participant for each scheme year a number of VRTS allowances which is equal to P multiplied by T, where—

(a) P is the percentage shown in column 2 of the Table in Part 2 of Schedule 6 for that scheme year; and

(b) T is the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(3) The administrator must allocate to a low-volume VRTS participant a number of VRTS allowances for a scheme year which is equal to the number of vans of which the low-volume VRTS participant is the manufacturer and which were registered during that scheme year, subject to a maximum of 2,499 VRTS allowances.

(4) Paragraph (5) applies for the purpose of calculating the number of VRTS allowances to be allocated to a VRTS participant where—

(a) the VRTS participant is not a low-volume VRTS participant for the scheme year for which the calculation is made (referred to in this paragraph and in paragraph (5) as “the transition year”);

(b) the VRTS participant was a low-volume VRTS participant for the scheme year immediately preceding the transition year; and

(5) Where this paragraph applies, the administrator must allocate to the VRTS participant a number of VRTS allowances for the transition year which is equal to the higher of—

(a) the number of vans of which the low-volume VRTS participant is the manufacturer and which were registered during the transition year, subject to a maximum of 2,499 VRTS allowances; or

(b) the number which results from the application of the formula in paragraph (2) for the transition year.

(6) Paragraph (7) applies for the purpose of calculating the number of VRTS allowances to be allocated to a VRTS participant which—

(a) was a low-volume VRTS participant by virtue of Part 2 of Schedule 4 for the 2029 scheme year; and

(b) is the manufacturer of fewer than 2,500 vans, but more than 999 vans, which were registered during the 2030 scheme year.

(7) Where this paragraph applies, the administrator must allocate to the VRTS participant a number of VRTS allowances for the 2030 scheme year which is equal to the higher of—

(a) the number of vans of which the low-volume VRTS participant is the manufacturer and which were registered during the 2030 scheme year, subject to a maximum of 2,499 VRTS allowances; or

(b) the number which results from the application of the formula in paragraph (2) for the 2030 scheme year.

(8) The allocation of allowances in accordance with this article may not result in the allocation of part of a VRTS allowance which is smaller than one tenth of a VRTS allowance, and a VRTS participant’s allocation of VRTS allowances must, where necessary, be rounded to the nearest decimal place accordingly.

Banking VRTS allowances

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(1) A VRTS allowance which is allocated to a VRTS participant in accordance with article 45 for a scheme year (referred to in this article as “the scheme year of allocation”) may be—

(a) surrendered in accordance with article 59 by that VRTS participant, or by a VRTS participant which acquires the VRTS allowance through trading in accordance with article 57, for the scheme year of allocation, or for any of the three subsequent scheme years;

(b) traded in accordance with article 57 during the trading window following the scheme year of allocation or the trading window following any of the three subsequent scheme years, by that participant or by a VRTS participant which acquires the VRTS allowance through trading in accordance with article 57;

(ba) traded in accordance with article 57A during the trading window following the scheme year of allocation or the trading window following any of the three subsequent scheme years, by that VRTS participant or by a VRTS participant which acquires the VRTS allowance through trading in accordance with article 57;

(bb) exchanged for CRTS credits in accordance with article 23A during the trading window following the scheme year of allocation or the trading window following any of three subsequent years, by that participant or by a VRTS participant which acquires the VRTS allowance through trading in accordance with article 57;

(c) exchanged for VCTS allowances in accordance with article 67 during the trading window following the scheme year of allocation, or the trading window following any of the three subsequent years, by that participant or by a VRTS participant which acquires the VRTS allowance through trading in accordance with article 57.

(2) A VRTS participant may bank parts of VRTS allowances, but may not bank a part smaller than one tenth of a VRTS allowance.

Borrowing VRTS allowances

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(1) Subject to the following provisions of this article, a VRTS participant may, for any scheme year other than the 2030 scheme year, surrender in accordance with article 59 a number of VRTS allowances which are due to be allocated to it for later scheme years.

(2) A VRTS participant may borrow VRTS allowances provided—

(a) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2024 scheme year does not exceed 9% of the total number of vans of which the participant is manufacturer and which are registered during the 2024 scheme year;

(b) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2025 scheme year does not exceed 11.2% of the total number of vans of which the participant is manufacturer and which are registered during the 2025 scheme year; ...

(c) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2026 scheme year does not exceed 6% of the total number of vans of which the participant is manufacturer and which are registered during the 2026 scheme year;

(d) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2027 scheme year does not exceed 6.8% of the total number of vans of which the participant is manufacturer and which are registered during the 2027 scheme year;

(e) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2028 scheme year does not exceed 6.9% of the total number of vans of which the participant is manufacturer and which are registered during the 2028 scheme year; and

(f) the number of VRTS allowances which the VRTS participant borrows to surrender for the 2029 scheme year does not exceed 5.8% of the total number of vans of which the participant is manufacturer and which are registered during the 2029 scheme year.

(3) The total number of vans of which a VRTS participant is the manufacturer and which are registered during a scheme year is the number notified to the participant by the administrator under article 79.

(4) A VRTS participant may borrow parts of VRTS allowances, but may not borrow a part smaller than one tenth of a VRTS allowance.

(5) Where a VRTS participant intends to borrow VRTS allowances in accordance with this article for use for a scheme year—

(a) the VRTS participant must notify the administrator of that intention, and of the intended number of borrowed VRTS allowances, before the end of the trading window which follows that scheme year; and

(b) the administrator must decide whether or not the intended number of borrowed VRTS allowances is appropriate and notify the VRTS participant in writing of that decision.

(6) A VRTS participant may borrow VRTS allowances which are due to be allocated to it for the 2025 scheme year or for any subsequent scheme year and must account for any borrowed allowances in accordance with the following paragraphs of this article.

(7) Where a VRTS participant borrows a number of VRTS allowances to surrender for a scheme year, the participant must surrender an equivalent number of VRTS allowances or VRTS credits for the following scheme year or a subsequent scheme year, together with an additional number of VRTS allowances or VRTS credits, calculated in accordance with paragraphs (8) to (11).

(8) If the VRTS participant accounts for the borrowed allowances for the scheme year which follows immediately after the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 3.5% of the number of borrowed allowances.

(9) If the VRTS participant accounts for the borrowed allowances for a scheme year which begins one year after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 7.12% of the number of borrowed allowances.

(10) If the VRTS participant accounts for the borrowed allowances for a scheme year which begins two years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 10.87% of the number of borrowed allowances.

(10A) If the VRTS participant accounts for the borrowed allowances for a scheme year which begins three years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 14.75% of the number of borrowed allowances.

(10B) If the VRTS participant accounts for the borrowed allowances for a scheme year which begins four years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 18.77% of the number of borrowed allowances.

(10C) If the VRTS participant accounts for the borrowed allowances for a scheme year which begins five years after the end of the scheme year for which the borrowed allowances were surrendered, the VRTS participant must surrender—

(a) a number of VRTS allowances or VRTS credits which is equal to the number of borrowed allowances; and

(b) an additional number of VRTS allowances or VRTS credits which amounts to 22.93% of the number of borrowed allowances.

(11) Where the number of additional VRTS allowances or VRTS credits which is to be surrendered in accordance with sub-paragraph (b) of any of paragraphs (8) to (10C) is not a whole number, the number is to be rounded up to the nearest whole number of allowances or credits.

(12) A VRTS participant must account for a borrowed VRTS allowance for a scheme year no later than the 2030 scheme year.

(13) Where a VRTS participant decides to account for borrowed VRTS allowances for a scheme year earlier than the 2030 scheme year, that participant must notify the administrator of its decision, before the end of the trading window which follows the scheme year for which the participant intends to account for the allowances.

(14) Where a decision by a VRTS participant not to account for borrowed VRTS allowances for a scheme year would result in the participant having banked VRTS allowances standing in its name in the registry for the following scheme year, the VRTS participant must give a notification under paragraph (13) which relates to the number of borrowed VRTS allowances which would prevent that outcome.

(15) A borrowed VRTS allowance may not be exchanged under article 23A or 67 or traded under article 57 or 57A.

Banked allowances: pool VRTS participants

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(1) The administrator must transfer to a departing member its share of any banked pool allowances, calculated in accordance with paragraphs (2) and (3).

(2) The departing member’s share of the banked pool allowances is the number which results from adding together the departing member’s share of the in-year banked allowances for each of the scheme years of pooling during which it was a member of the pool VRTS participant, calculated in accordance with paragraph (3).

(3) The departing member’s share of the in-year banked allowances for a scheme year of pooling is calculated as follows.

Step 1Calculate “PZE”, which is the number of ZE vans of which the pool VRTS participant is treated as being the manufacturer in accordance with article 8(3) and which were registered during the scheme year of pooling.

Step 2Calculate “MZE”, which is the number of ZE vans of which the departing member is the manufacturer and which were registered during the scheme year of pooling.

Step 3Divide MZE by PZE.

Step 4The departing member’s share of the in-year banked allowances for a scheme year of pooling is the number of those allowances multiplied by the number obtained at step 3.

(4) A departing member may use its share of the banked pool allowances in accordance with article 46, as if those allowances had been allocated to it for the scheme year of pooling for which they were allocated to the pool VRTS participant.

(5) Any banked VRTS allowances which remain available for use in accordance with article 46 by a joining manufacturer may be used by the pool VRTS participant in accordance with article 46 for the scheme years of pooling, as if those allowances had been allocated to the pool VRTS participant for the scheme year for which they were allocated to the joining manufacturer.

(6) The administrator must update the registry to reflect the apportionment of banked pool allowances in accordance with this article.

Borrowed allowances: pool VRTS participants

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(1) A departing member’s share of the borrowed pool allowances is the number of VRTS allowances which results from adding together the departing member’s share of the in-year borrowed allowances for each of the scheme years of pooling during which it was a member of the pool VRTS participant, calculated in accordance with paragraph (2).

(2) The departing member’s share of the in-year borrowed allowances for a scheme year of pooling is calculated as follows.

Step 1Calculate “PNZE”, which is the number of NZE vans of which the pool VRTS participant is treated as being the manufacturer in accordance with article 8(3) and which were registered during the scheme year of pooling.

Step 2Calculate “MNZE”, which is the number of NZE vans of which the departing member is the manufacturer and which were registered during the scheme year of pooling.

Step 3Divide MNZE by PNZE.

Step 4The departing member’s share of the in-year borrowed allowances for a scheme year of pooling is the number of those allowances multiplied by the number obtained at step 3.

(3) A departing member must account for its share of the borrowed pool allowances in accordance with article 47(7), as if those allowances had been borrowed by it for the scheme year of pooling for which they were borrowed by the pool VRTS participant.

(4) Any borrowed VRTS allowances which have not been accounted for by a joining manufacturer in accordance with article 47(7) must be so accounted for by the pool VRTS participant for the scheme years of pooling, as if those allowances had been borrowed by the pool VRTS participant for the scheme year for which they were borrowed by the joining manufacturer.

(5) The administrator must update the registry to reflect the apportionment of borrowed VRTS allowances in accordance with this article.

VRTS credits: general

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(1) A VRTS participant may acquire a VRTS credit in accordance with articles 25A, 26A, 51, 52 and 55 to 55B.

(2) Where it acquires a VRTS credit for a scheme year, a VRTS participant may—

(a) surrender that VRTS credit for that scheme year in accordance with article 59; or

(b) trade that credit in accordance with article 57 during the trading window following that scheme year unless the credit was acquired in accordance with article 25A, 26A, 55, 55A or 55B.

(3) An SPV van manufacturer may acquire a VRTS credit in accordance with article 53 or 54.

(4) An SPV van manufacturer may trade a credit acquired for a scheme year in accordance with article 58 or 58A during the trading window following that scheme year.

(5) Where a VRTS participant or an SPV van manufacturer acquires a VRTS credit in accordance with articles 51 to 55B, the administrator must update the registry accordingly (see also the requirement for the administrator to update the registry in articles 25A(7) and 26A(8)).

VRTS credits: registration of ZE SPVs (VRTS participants)

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(1) A VRTS participant acquires a VRTS credit for a scheme year for each ZE SPV of which it is the manufacturer and—

(a) which is registered during a scheme year; and

(b) which is a vehicle of category N1 or a vehicle of category N2 which falls within the description in paragraph (c) of the definition of “van” in article 3(1).

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

VRTS credits: car clubs (VRTS participants)

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(1) Subject to paragraph (6), a VRTS participant acquires half a VRTS credit for a scheme year (in addition to any VRTS credit acquired under article 51 where applicable) for each ZE van, ZE SPV of category N1, or ZE SPV of category N2 which falls within the description in paragraph (c) of the definition of “van” in article 3(1)—

(a) of which it is the manufacturer and which is registered during the scheme year; and

(b) which is to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date it is registered.

(2) The administrator must record in the registry the expiry of a half VRTS credit acquired by a VRTS participant under paragraph (1) if—

(a) the administrator gives written notice to the VRTS participant that it is satisfied that a ZE van or ZE SPV mentioned in paragraph (1)(a) is not being, or has not been, used in accordance with paragraph (1)(b); and

(b) the VRTS participant has not traded that half VRTS credit in accordance with article 57 nor surrendered it in accordance with article 59.

(3) Where a VRTS participant receives, before 1st November 2031, a notice from the administrator in accordance with paragraph (2)(a) and it has traded in accordance with article 57, or surrendered in accordance with article 59, a half VRTS credit acquired under paragraph (1) to which that notice applies, that participant must account for each such half VRTS credit in accordance with article 59(1)(b).

(4) A VRTS participant must comply with the obligation in paragraph (3)—

(a) for the scheme year for which the administrator is satisfied that a ZE van or ZE SPV mentioned in paragraph (1)(a) is not being, or has not been, used in accordance with paragraph (1)(b); or

(b) for the 2030 scheme year, where the administrator is so satisfied after the end of the 2030 scheme year but before 1st November 2031.

(5) The administrator may not give a notice in accordance with paragraph (2)(a) where—

(a) the car club has ceased to use a ZE van or ZE SPV for the purposes of offering a car club service because the vehicle has sustained damage; and

(b) the Secretary of State has been notified of that in accordance with paragraph 1 or 2 of Schedule 3A to the Road Vehicles (Registration and Licensing) Regulations 2002.

(6) A VRTS participant may not acquire a number of VRTS credits for a scheme year in accordance with this article which exceeds 2.5% of the number of cars, vans and SPVs of which that participant is the manufacturer and which were registered during the scheme year.

VRTS credits: registration of ZE SPVs (SPV van manufacturers)

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An SPV van manufacturer acquires a VRTS credit for a scheme year in respect of each ZE SPV of which it is the manufacturer and which—

(a) is registered during the scheme year; and

(b) is a vehicle of category N1 or a vehicle of category N2 which falls within the description in paragraph (c) of the definition of “van” in article 3(1).

VRTS credits: car clubs (SPV van manufacturers)

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(1) Subject to paragraph (3), an SPV van manufacturer acquires half a VRTS credit for a scheme year (in addition to any VRTS credit acquired under article 53 where applicable) for each ZE SPV of category N1 or ZE SPV of category N2 which falls within the description in paragraph (c) of the definition of “van” in article 3(1)—

(a) of which it is the manufacturer and which is registered during the scheme year; and

(b) which is to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date it is registered.

(2) The administrator must record in the registry the expiry of a half CRTS credit acquired by an SPV van manufacturer under paragraph (1) if—

(a) the administrator gives written notice to the SPV van manufacturer that it is satisfied that a ZE SPV mentioned in paragraph (1)(a) is not being, or has not been, used in accordance with paragraph (1)(b); and

(b) the SPV van manufacturer has not traded that half VRTS credit in accordance with article 58.

(3) Where an SPV van manufacturer receives, before 1st November 2031, a notice from the administrator in accordance with paragraph (2)(a) and it has traded in accordance with article 58 or 58A a half VRTS credit acquired under paragraph (1) to which that notice applies, the SPV van manufacturer must forfeit a half VRTS credit to which it becomes entitled under paragraph (1) for each half VRTS credit to which the notice relates.

(4) The administrator may not give a notice in accordance with paragraph (2)(a) where—

(a) the car club has ceased to use the ZE SPV for the purposes of offering a car club service because the vehicle has sustained damage; and

(b) the Secretary of State has been notified of that in accordance with paragraph 1 or 2 of Schedule 3A to the Road Vehicles (Registration and Licensing) Regulations 2002.

VRTS credits: conversion of unused VCTS allowances

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(1) A VRTS participant may acquire one VRTS credit in exchange for 216 unused VCTS allowances by making a request to the administrator if—

(a) the VRTS participant’s number of units of activity in the VCTS in a scheme year does not exceed the number of VCTS allowances which were allocated to it in accordance with article 66 for that year;

(b) the VRTS participant has more VCTS allowances than it requires in order to comply with article 70 (accounting for activity in the VCTS) for that scheme year (referred to in this article as “unused VCTS allowances”); and

(2) A request under paragraph (1)—

(a) must be made during the trading window following the scheme year for which the unused VCTS allowances were allocated; and

(b) must be for a whole number of VRTS credits.

(3) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2024 scheme year is limited to a number of VRTS credits which does not exceed 6.5% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(4) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2025 scheme year is limited to a number of VRTS credits which does not exceed 14.4% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(5) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2026 scheme year is limited to a number of VRTS credits which does not exceed 19.2% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(5A) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2027 scheme year is limited to a number of VRTS credits which does not exceed 23.8% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(5B) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2028 scheme year is limited to a number of VRTS credits which does not exceed 27.6% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(5C) A request under paragraph (1) to exchange unused VCTS allowances allocated for the 2029 scheme year is limited to a number of VRTS credits which does not exceed 29% of the total number of vans of which the VRTS participant is the manufacturer and which were registered during that scheme year.

(6) A VRTS credit acquired in accordance with this article may not be traded under article 57.

Measuring activity in the VRTS

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A VRTS participant’s number of units of activity in the VRTS during a scheme year is the number of NZE vans of which the participant is the manufacturer and which are registered during that scheme year, as notified to the participant by the administrator in accordance with article 79.

Trading VRTS allowances and credits: VRTS participants

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(1) During a trading window, a VRTS participant may trade any VRTS allowances or VRTS credits with another VRTS participant, but may not trade—

(a) a VRTS allowance which was borrowed in accordance with article 47; or

(b) a VRTS credit which was acquired in accordance with article 25A (trading CRTS allowances with VRTS participants), article 26A (trading CRTS credits with VRTS participants: SPV car manufacturers), article 55 (conversion of unused VCTS allowances), article 55A (conversion of unused CRTS allowances) or article 55B (conversion of CRTS credits by SPV car manufacturer).

(2) A VRTS participant may trade parts of VRTS allowances or VRTS credits, but may not trade a part smaller than one tenth of a VRTS allowance or VRTS credit.

(3) Each VRTS participant which is party to a trade under this article must, before the end of the trading window, notify the administrator of the trade and each notification must include—

(a) the name and account number in the registry of the VRTS participant which is the transferor;

(b) the name and account number in the registry of the VRTS participant which is the transferee;

(ba) a statement of the fact the trade was carried out under this article;

(d) the price paid for those VRTS allowances or VRTS credits.

(4) A VRTS participant which trades a VRTS allowance or a VRTS credit in accordance with this article must inform the other party to the trade of their account number in the registry.

(5) Where a VRTS participant is a pool VRTS participant, a reference in this article to a VRTS participant’s account number is a reference to the account number of the manufacturer identified to the administrator in accordance with—

(a) paragraph 5(c)(i) of Schedule 5 (application to be treated as a pool participant) in the application made under that Schedule; or

(b) article 83(1) (updating information provided with application under Schedule 5).

(6) Where a trade is notified in accordance with paragraph (3), the administrator must update the registry and notify the parties to the trade accordingly.

(7) Unless the administrator is satisfied that notification of a trade has been given in accordance with this article, the trade is treated as not having taken place.

Trading VRTS credits: SPV van manufacturers

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(1) An SPV van manufacturer may trade VRTS credits acquired by it under article 53 or 54 with a VRTS participant in accordance with paragraphs (2) and (3).

(2) An SPV car manufacturer may only trade a VRTS credit under this article during the trading window following the scheme year for which the VRTS credit was acquired by the SPV van manufacturer.

(3) A trade under this article must comply with paragraphs (2) to (5) of article 57, as if the references to a VRTS participant in those paragraphs (with the exception of the reference in paragraph (3)(b)) include an SPV van manufacturer.

(4) Where a trade is notified in accordance with article 57(3), the administrator must update the registry and notify the parties to the trade accordingly.

(5) Unless the administrator is satisfied that notification of a trade has been given in accordance with this article, the trade is treated as not having taken place.

Accounting for activity in the VRTS

59

(1) For each scheme year, and no later than 31st December of the year following a scheme year, a VRTS participant must account for—

(a) each unit of its activity in the VRTS, measured in accordance with article 56, by surrendering a VRTS allowance or a VRTS credit;

(b) each half VRTS credit which the participant must account for in accordance with article 52(3) (car clubs), by surrendering a half VRTS allowance or a half VRTS credit; and

(c) any additional VRTS allowances or VRTS credits which the participant must surrender, or which it chooses to surrender, for that scheme year in accordance with article 47(7) (accounting for borrowed VRTS allowances).

(2) A VRTS participant must surrender in accordance with paragraph (1) VRTS allowances and VRTS credits which are recorded in its name in the registry, including any VRTS allowances or VRTS credits acquired through trading in accordance with article 57 or 58, in the following order of priority—

(a) VRTS credits;

(b) VRTS allowances which were allocated by the administrator for the scheme year for which the surrender is made;

(d) banked VRTS allowances.

(3) The administrator must update the registry to record the surrender of VRTS allowances and VRTS credits.

Payments: VRTS

60

(1) Where a VRTS participant has insufficient VRTS allowances or VRTS credits to account for the matters in article 59(1) for a scheme year, it must make a payment to the administrator.

(2) Subject to paragraph (3), the payment amount is £15,000 for—

(a) each unit of the VRTS participant’s activity in the VRTS during the scheme year, measured in accordance with article 56, which the participant does not account for by surrendering a VRTS allowance or a VRTS credit to the administrator on or before the 31st December of the year following that scheme year;

(b) each VRTS credit which the VRTS participant must account for in accordance with article 52(3) (car clubs) for the scheme year, and which the participant does not account for by surrendering a VRTS allowance or a VRTS credit to the administrator on or before the 31st December of the year following that scheme year; and

(c) each additional VRTS allowance which the VRTS participant must account for in accordance with article 47(7) (borrowed VRTS allowances) for the scheme year and which the participant does not account for by surrendering a VRTS allowance or VRTS credit to the administrator on or before the 31st December of the year following that scheme year.

(3) For the 2024 scheme year, the payment amount in respect of each of the matters mentioned in paragraph (2)(a) or (b) is £9,000.

(4) The administrator must give a VRTS participant notice of a requirement to make a payment in accordance with this article (referred to in this article as a “payment notice”).

(5) A payment notice must be in writing and must set out—

(a) the amount of the payment and how the amount is calculated;

(b) the date by which payment must be made, which must not be less than 30 days after the date on which the notice is given;

(d) how payment must be made; and

(e) information about rights of appeal.

(6) A VRTS participant which receives a payment notice under this article must make the payment in accordance with the notice.

(7) The administrator must pay any payment received under this article into the consolidated fund.

Banked or borrowed VRTS allowances of former VRTS participants

61

(1) This article applies to a person who—

(a) was a VRTS participant, or a member of a pool VRTS participant, for a scheme year;

(b) is no longer a VRTS participant or a member of a pool VRTS participant for the subsequent scheme year; and

(c) has banked VRTS allowances standing in their name in the registry or has not yet accounted for borrowed VRTS allowances in accordance with article 47.

(2) In this article, a person described in paragraph (1) is referred to as a “former VRTS participant”, and the first scheme year for which the person no longer participates in the VRTS, as described in paragraph (1)(b), is referred to as the “first non-participation scheme year”.

(3) A former VRTS participant may dispose of a banked VRTS allowance referred to in paragraph (1)(c) during the trading window which follows the first non-participation scheme year through exchanging in accordance with article 23A or 67, or trading in accordance with article 57 or 57A, as if references in those articles to VRTS participants (except for the reference in article 57(3)(b)) include the former VRTS participant.

(4) A former VRTS participant must account for a borrowed VRTS allowance referred to in paragraph (1)(c) in accordance with article 47 before the end of the trading window which follows the first non-participation scheme year.

(5) A former VRTS participant may comply with the obligation in paragraph (4) by—

(a) surrendering a banked VRTS allowance;

(b) acquiring a VRTS allowance or VRTS credit during the trading window which follows the first non-participation scheme year through exchanging in accordance with article 55, 55A or 55B, or trading in accordance with article 25A, 26A, 57 or 58, as if references in those articles to a VRTS participant include the former VRTS participant, and surrendering that allowance or credit; or

Expiry of VRTS allowances and VRTS credits

62

(1) The administrator must record in the registry the expiry of a VRTS allowance, including a VRTS allowance which has been traded in accordance with article 57, which is—

(a) surrendered by a VRTS participant in accordance with article 59;

(b) not surrendered by a VRTS participant for—

(i) the scheme year for which it was allocated;

(ii) any of the three subsequent scheme years; or

(iii) a scheme year earlier than the scheme year for which it was due to be allocated, in accordance with article 47 (borrowing VRTS allowances);

(ca) converted into CRTS credits in accordance with article 23A;

(cb) converted into CRTS credits pursuant to a trade under article 57A; or

(d) converted into VCTS allowances in accordance with article 67.

(2) The administrator must record in the registry the expiry of a VRTS credit, including a VRTS credit which has been traded in accordance with article 57 or 58, which is—

(a) surrendered by a VRTS participant in accordance with article 59; ...

(b) not surrendered by a VRTS participant for the scheme year for which the credit was acquired;

(d) converted into CRTS credits pursuant to a trade under article 58A.

Chapter 4 — The Non-Zero-Emission Van CO2 Trading Scheme (VCTS)

Activity to which the VCTS applies and unit of measurement of activity

63

(1) The activity to which the VCTS applies is the registration of an NZE van during the trading period.

(2) The unit of measurement of that activity is each gram of CO₂ per kilometre emitted by such a van.

Participants in the VCTS

64

(1) Subject to paragraph (2), the manufacturer of more than 999 NZE vans which are registered during a scheme year is a VCTS participant for that year.

(2) Where two or more manufacturers are collectively the manufacturers of more than 999 NZE vans which are registered during a scheme year, those manufacturers are a pool VCTS participant for that scheme year if theadministrator has granted an application made by those manufacturers under Schedule 5 (application by two or more manufacturers to be a pool participant in the Trading Schemes) for that scheme year which relates to the VCTS.

(3) Where there is any doubt as to the identification of the manufacturer of a van in accordance with paragraphs (a) to (e) of the definition of “manufacturer” in article 3 (1), the administrator may identify the VCTS participant in relation to the registration of that van.

VCTS allowances

65

A VCTS allowance is an allowance for an NZE van which is registered during a scheme year to emit one gram of CO₂ per kilometre.

Allocation of VCTS allowances

66

(1) Subject to paragraph (2), the administrator must allocate to each VCTS participant for each scheme year a number of VCTS allowances which is equal to N multiplied by B, where—

(a) N is the number of NZE vans of which the participant is the manufacturer and which are registered during that scheme year; and

(b) B is that participant’s baseline.

(2) Where the number of VCTS allowances which results from the application of the formula in paragraph (1) is not a whole number, the number is to be rounded to the nearest whole number.

Conversion of unused VRTS allowances into VCTS allowances

67

(1) During a trading window, a VCTS participant may acquire 206 VCTS allowances in exchange for one unused VRTS allowance by making a request to the administrator if—

(a) the participant's number of units of activity in the VRTS in a scheme year, measured in accordance with article 56, does not exceed the sum of—

(i) the number of VRTS allowances which were allocated to the participant in accordance with article 45 for that year; and

(ii) the number of any VRTS allowances which were banked by the participant in accordance with article 46 and were available for it to use at the beginning of the trading window;

(b) the participant has more VRTS allowances than it requires (referred to in this article as “unused VRTS allowances”) in order to comply with article 59 (accounting for activity in the VRTS) for that scheme year; and

(2) A request under paragraph (1)—

(a) must be made during the trading window following the scheme year for which the VCTS participant intends to surrender the VCTS allowances to which the request relates; and

(b) must relate to a whole number of VRTS allowances.

(3) If a VCTS participant makes a request in accordance with paragraph (1), the administrator must update the registry accordingly.

Measuring activity in the VCTS

68

(1) The number of units of activity that must be accounted for by a VCTS participant for a scheme year is the sum of the number of grams of CO₂ per kilometre emitted by each NZE van of which the participant is the manufacturer and which is registered during the scheme year.

(2) For the purposes of this article, the number of grams of CO₂ per kilometre emitted by an NZE van is the specific emissions of CO₂ of the van, with that number having been—

(a) if applicable, reduced in accordance with paragraph (3); and

(b) if applicable, corrected in accordance with Article 13(3) of Regulation (EU) 2019/631 (lack of correspondence of CO₂ emission and fuel consumption values).

(3) An NZE van’s specific emissions of CO₂ are reduced by the number of grams of CO₂ per kilometre specified in the van’s certificate of conformity as CO₂ savings achieved by any eco-innovation, unless—

(a) the Secretary of State has given a notice to the administrator in accordance with Article 12(2)(b) of Regulation (EU) 427/2014[^f00016] which relates to the eco-innovation; and

(b) the notice was given during the scheme year which immediately preceded the scheme year for which a VCTS participant’s number of units of activity in the VCTS is measured.

(4) A VCTS participant’s number of units of activity during a scheme year, if not a whole number, is calculated to three decimal places only.

Trading VCTS allowances

69

(1) During a trading window, a VCTS participant may trade any VCTS allowances with another VCTS participant.

(2) A VCTS participant must trade whole numbers of VCTS allowances.

(3) Each VCTS participant which is a party to a trade must, before the end of the trading window, notify the administrator and each notification must include—

(a) the name and account number in the registry of the VCTS participant which is the transferor;

(b) the name and account number in the registry of the VCTS participant which is the transferee;

(d) the price paid for those VCTS allowances.

(4) A VCTS participant which trades a VCTS allowance in accordance with this article must inform the other party to the trade of their account number in the registry.

(5) Where a VCTS participant is a pool VCTS participant, a reference in this article to a VCTS participant’s account number is a reference to the account number of the manufacturer identified to the administrator in accordance with—

(a) paragraph 5 (c)(i) of Schedule 5 (application to be treated as a pool participant) in the application made under that Schedule; or

(b) article 83 (1) (updating information provided with application under Schedule 5).

(6) Where a trade is notified in accordance with paragraph (3), the administrator must update the registry and notify the parties to the trade accordingly.

(7) Unless the administrator is satisfied that notification of a trade has been given in accordance with this article, the trade is treated as not having taken place.

Accounting for activity in the VCTS

70

(1) For each scheme year, and no later than 31st December of the year following a scheme year, a VCTS participant must account for each unit of its activity during the scheme year, measured in accordance with article 68, by surrendering a VCTS allowance.

(2) The administrator must update the registry to record the surrender of VCTS allowances.

Payments: VCTS

71

(1) Where a VCTS participant has insufficient VCTS allowances to account for its activity during a scheme year in accordance with article 70, it must make a payment to the administrator in accordance with this article.

(2) The payment amount is £86 for each unit of a VCTS participant’s activity during a scheme year, measured in accordance with article 68, which the participant does not account for by surrendering a VCTS allowance to the administrator on or before 31st December of the year following that scheme year.

(3) Where the payment amount referred to in paragraph (2) is not a whole number of pence, the amount is to be rounded to the nearest whole number of pence.

(4) The administrator must give a VCTS participant notice of a requirement to make a payment in accordance with this article (referred to in this article as a “payment notice”).

(5) A payment notice must be in writing and must set out—

(a) the amount of the payment and how the amount is calculated;

(b) the date by which payment must be made, which must not be less than 30 days after the date on which the notice is given;

(d) how payment must be made; and

(e) information about rights of appeal.

(6) A VCTS participant which receives a payment notice under this article must make the payment in accordance with the notice.

(7) The administrator must pay any payment received under this article into the consolidated fund.

Expiry of VCTS allowances

72

The administrator must record in the registry the expiry of a VCTS allowance, including a VCTS allowance which has been traded in accordance with article 69, which is—

(a) surrendered by a VCTS participant;

(b) not surrendered in accordance with article 70 for the scheme year for which it was allocated under article 66 or for which it was acquired under article 67 (conversion of unused VRTS allowances into VCTS allowances); or

Part 4 — Information

Information: participants in the Trading Schemes

73

(1) Subject to paragraph (4), for each scheme year, the administrator must gather and record—

(a) the information specified in Part 1 of Schedule 7, in relation to each car and each ZE SPV of category M1 which is registered during that scheme year;

(b) the information specified in Part 2 of Schedule 7, in relation to each van, each ZE SPV of category N1, and each ZE SPV of category N2 which is within the description in paragraph (c) of the definition of “van” in article 3(1), which is registered during that scheme year; and

(c) the information specified in Part 3 of Schedule 7, in relation to the base vehicle of a completed van which is registered during that scheme year.

(2) The information specified in paragraph 1 or 6 of Schedule 7 , except for the information in paragraphs 1(s), 6(r) and 6(s) of that Schedule is to be taken from the certificate of conformity, or the individual vehicle approval certificate, of the car, the van or the ZE SPV, as the case may be.

(3) Subject to paragraph (4), for each scheme year, a participant in the Trading Schemes must, in relation to each car, van, ZE SPV or base vehicle of which it is the manufacturer and which is registered during the scheme year—

(a) ensure that the information in Part 1, 2 or 3 of Schedule 7, as the case may be, is available to the administrator through the process of type-approval and registration of vehicles; and

(b) to the extent that the information is not so available, provide the information to the administrator—

(i) on or before 31st August of the year following each scheme year; or

(ii) where the information is that specified in paragraph 2 or 7 of Schedule 7, within the period of time specified in a request made by the administrator for the provision of that information.

(4) The obligations in paragraphs (1) and (3) do not apply to the extent that the administrator—

(a) is satisfied that the information referred to in those paragraphs is not available in relation to a particular vehicle; and

(b) notifies the participant in the Trading Schemes concerned of that fact in writing.

(4A) For the purposes of the obligations in paragraphs (1) and (3), the reference to “specific emissions of CO₂” in paragraph 1(g) of Schedule 7, is to be treated, in relation to a vehicle in respect of which the administrator has granted an application under Schedule 3A (alternative specific emissions of CO₂: OVC hybrid electric vehicles), as having the meaning it would have if that application had not been granted.

(4B) Where the administrator has granted an application for the specific emissions of CO₂ of a vehicle to be determined in accordance with Part 6 of Schedule 3A, the administrator must also record the specific emissions of CO₂ of the vehicle as determined in accordance with that Part.

(5) A CRTS participant or VRTS participant must provide to the administrator, on or before 31st August of the year following a scheme year—

(a) the number of ZE cars, ZE vans and ZE SPVs of which the participant is the manufacturer and which were registered during the scheme year which are to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date they are registered, along with the vehicle identification numbers of the vehicles and the name by which the operator of the car club is known;

(b) evidence that condition C of the zero-emission conditions (warranty) is met in relation to the ZE cars, ZE vans and ZE SPVs of which the participant is the manufacturer and which were registered during the scheme year;

(c) the number of ZE SPVs of which the participant is the manufacturer and which were registered during the scheme year, except for ZE wheelchair accessible SPVs, and a breakdown of that number by vehicle category for the purposes of Article 4 of Regulation (EU) 2018/858;

(d) the number of ZE wheelchair accessible SPVs of which the participant is the manufacturer and which were registered during the scheme year; and

(e) a copy of the audit certificate referred to in article 75(3).

(6) Subject to paragraph (7), a participant in the Trading Schemes must notify the administrator on or before the date which is two months after the date on which this Order comes into force of—

(a) the name, address and other contact details of the person to whom any notification or correspondence about the Trading Schemes should be sent;

(b) the name which the participant, or which each manufacturer which is a member of a pool participant in the Trading Schemes, indicates or intends to indicate on the certificate of conformity or the individual vehicle approval certificate for the cars, vans or ZE SPVs of which it is the manufacturer; and

(c) the world manufacturer identifier of the vehicle identification number which the participant, or which each manufacturer which is a member of a pool participant in the Trading Schemes, indicates, or intends to indicate, on the certificate of conformity or the individual vehicle approval certificate for the cars, vans or ZE SPVs of which it is the manufacturer.

(7) A participant which becomes a participant in the Trading Schemes after the date mentioned in paragraph (6) must provide the administrator with the information mentioned in that paragraph without delay after becoming a participant.

(8) A participant in the Trading Schemes must notify any changes to the information mentioned in paragraph (6) to the administrator without delay.

(9) The administrator must notify each manufacturer which is a participant in the Trading Schemes, or which is a member of a pool participant in the Trading Schemes, of its account number in the registry before the start of the trading window which follows the first scheme year for which that manufacturer becomes a participant in the Trading Schemes or a member of a pool participant in the Trading Schemes.

Information: SPV manufacturers

74

(1) Where an SPV manufacturer wishes to acquire a CRTS credit or a VRTS credit for a scheme year accordance with article 21, 22, 53 or 54, the SPV manufacturer must comply with paragraphs (2) to (4).

(2) An SPV manufacturer must notify the administrator on or before 20th April of the year following the scheme year for which it wishes to acquire a credit described in paragraph (1) of—

(a) the name, address and other contact details of the person to whom any notification or correspondence about the Trading Schemes should be sent;

(b) the name which the SPV manufacturer indicates, or intends to indicate, on the certificate of conformity or the individual vehicle approval certificate for the ZE SPVs of which it is the manufacturer; and

(c) the world manufacturer identifier of the vehicle identification number which the SPV manufacturer indicates, or intends to indicate, on the certificate of conformity or the individual vehicle approval certificate for the ZE SPVs of which it is the manufacturer.

(3) Subject to paragraph (5), an SPV manufacturer must ensure that the following information, in relation to each ZE SPV of which is the manufacturer and which is registered during a scheme year for which it wishes to acquire a credit described in paragraph (1), is available to the administrator through the process of type-approval and registration of vehicles, and to the extent that it is not, provide it to the administrator on or before 31st August of the year following that scheme year—

(a) the information specified in sub-paragraphs (a) to (s) of paragraph 1 of Schedule 7, in relation to each ZE SPV of category M1 which is registered during that scheme year; and

(b) the information specified in sub-paragraphs (a) to (t) of paragraph 6 of Schedule 7, in relation to each ZE SPV of category N1, and each ZE SPV of category N2 which is within the description in paragraph (c) of the definition of “van” in article 3 (1), which is registered during that scheme year.

(4) An SPV manufacturer must provide to the administrator, on or before 31st August of the year following the scheme year for which it wishes to acquire a credit described in paragraph (1)—

(a) the number of ZE SPVs of which the participant is the manufacturer and which were registered during the scheme year which are to be used exclusively by a car club for the provision of a car club service for a period of 18 months from the date they are registered, along with the vehicle identification numbers of the SPVs and the name by which the operator of the car club is known;

(b) evidence that condition C of the zero-emission conditions (warranty) is met in relation to the ZE SPVs of which the SPV manufacturer is the manufacturer and which were registered during the scheme year;

(c) the number of ZE SPVs of which the participant is the manufacturer and which were registered during the scheme year, except for ZE wheelchair accessible SPVs, and a breakdown of that number by vehicle category for the purposes of Article 4 of Regulation (EU) 2018/858;

(d) the number of ZE wheelchair accessible SPVs of which the participant is the manufacturer and which were registered during the scheme year; and

(e) a copy of the audit certificate referred to in article 76 (3).

(5) The obligation in paragraph (3) does not apply to the extent that the administrator—

(a) is satisfied that the information referred to in that paragraph is not available in relation to a particular vehicle; and

(b) notifies the SPV manufacturer concerned of that fact in writing

Maintenance and audit of records by participants in the Trading Schemes

75

(1) A participant in the Trading Schemes must keep a record of the information referred to in article 73 (1) and (5)(a) to (d) in relation to the cars, vans and ZE SPVs of which the participant is the manufacturer and which are registered during each scheme year.

(2) A participant in the Trading Schemes must, on at least an annual basis, carry out an audit of the records required to be kept under paragraph (1) to ensure its compliance with the requirements of that paragraph.

(3) The participant in the Trading Schemes must evidence the satisfactory completion of such an audit by completing a document in writing (referred to in paragraph (4) as an “audit certificate”).

(4) The audit certificate may be in such form as the participant in the Trading Schemes sees fit but must be—

(a) signed by a person who exercises management control in respect of the activities of the participant; and

(b) kept with its records.

Maintenance and audit of records by SPV manufacturers

76

(1) An SPV manufacturer must keep a record of the information referred to in article 74 (3) and (4)(a) to (d) in relation to the ZE SPVs of which it is the manufacturer and which are registered during each scheme year for which the SPV manufacturer wishes to earn a CRTS credit or VRTS credit.

(2) An SPV manufacturer must, on at least an annual basis, carry out an audit of the records required to be kept under paragraph (1) to ensure its compliance with the requirements of that paragraph.

(3) An SPV manufacturer must evidence the satisfactory completion of such an audit by completing a document in writing (referred to in paragraph (4) as an “audit certificate”).

(4) The audit certificate may be in such form as the SPV manufacturer sees fit but must be—

(a) signed by a person who exercises management control in respect of the activities of the SPV manufacturer; and

(b) kept with its records.

Preparation of provisional information

77

(1) On or before 31st May of each year following a scheme year, the administrator must prepare the following information for the scheme year, and for each participant in the Trading Schemes—

(a) the total number of cars of which the participant is the manufacturer and which were registered during the scheme year;

(b) the total number of vans of which the participant is the manufacturer and which were registered during the scheme year;

(d) the number of ZE vans of which the participant is the manufacturer and which were registered during the scheme year;

(e) the number of NZE cars of which the participant is the manufacturer and which were registered during the scheme year and their specific emissions of CO₂;

(f) the number of NZE vans of which the participant is the manufacturer and which were registered during the scheme year and their specific emissions of CO₂;

(g) the average of the specific emissions of CO₂ of the NZE cars of which the participant is the manufacturer and which were registered during the scheme year;

(h) the average of the specific emissions of CO₂ of the NZE vans of which the participant is the manufacturer and which were registered during the scheme year;

(i) the number of ZE SPVs of category M1, except for ZE wheelchair accessible SPVs, of which the participant is the manufacturer and which were registered during the scheme year;

(j) the number of ZE wheelchair accessible SPVs of which the participant is the manufacturer and which were registered during the scheme year;

(k) the number of ZE SPVs of category N1, or of category N2 which fall within the description in paragraph (c) of the definition in “van” in article 3 (1), of which the participant is the manufacturer and which were registered during the scheme year;

(l) the number of CRTS allowances allocated and, where applicable, the number of banked CRTS allowances , within the meaning of article 9(b);

(m) the number of VRTS allowances allocated and, where applicable, the number of banked VRTS allowances , within the meaning of article 41(b);

(n) the number of CCTS allowances allocated;

(o) the number of VCTS allowances allocated;

(p) the number of CRTS credits acquired;

(q) the number of VRTS credits acquired;

(r) the number of units of activity in the CRTS and any additional matters for which the participant must account for that scheme year in accordance with article 27 (1)(b) or (c) (car club credits and borrowed CRTS allowances);

(s) the number of units of activity in the VRTS and any additional matters for which the participant must account for that scheme year in accordance with article 59 (1)(b) or (c) (car club credits and borrowed VRTS allowances);

(t) the number of units of activity in the CCTS;

(u) the number of units of activity in the VCTS.

(2) The administrator must, on or before 31st May of each year following a scheme year, notify in writing each participant in the Trading Schemes of—

(a) the provisional information mentioned in paragraph (1); and

(b) such of the information specified in Schedule 7 for that participant and that scheme year as the administrator holds.

(3) On or before 31st May of each year following a scheme year, the administrator must prepare the following information for the scheme year and for each SPV manufacturer—

(a) the number of ZE SPVs of category M1, except for ZE wheelchair accessible SPVs, of which the SPV manufacturer is the manufacturer and which were registered during the scheme year;

(b) the number of ZE wheelchair accessible SPVs of which the SPV manufacturer is the manufacturer and which were registered during the scheme year;

(c) the number of ZE SPVs of category N1, or of category N2 which fall within the description in paragraph (c) of the definition in “van” in article 3 (1), of which the SPV manufacturer is the manufacturer and which were registered during the scheme year;

(d) the number of CRTS credits acquired;

(e) the number of VRTS credits acquired.

(4) The administrator must, on or before 31st May of each year following a scheme year, notify in writing each SPV manufacturer of—

(a) the provisional information mentioned in paragraph (3); and

(b) such of the information specified in Schedule 7 in relation to that SPV manufacturer and that scheme year as the administrator holds.

Error notification

78

(1) On or before 31st August of each year following a scheme year, a participant in the Trading Schemes or an SPV manufacturer may notify the administrator of any errors identified in the information notified by the administrator under article 77 (2) or (4).

(2) A notification given under paragraph (1)—

(a) must identify the error; and

(b) may be accompanied by evidence which demonstrates that the administrator has made an error.

(3) The administrator must take into account a notification given under this article in the preparation of the final information under article 79.

Preparation and notification of final information

79

On or before 31st October of each year following a scheme year, the administrator must prepare the final information mentioned in article 77 (1) and (3) and notify it in writing to each participant in the Trading Schemes and each SPV manufacturer.

Publication of final information

80

(1) On or before 15th March of the year which begins one year after the end of a scheme year, the administrator must publish the following information for the scheme year—

(a) the information mentioned in paragraph 1 of Schedule 7, with the exception of the information in sub-paragraph (n) and sub-paragraphs (t) to (v);

(b) the information mentioned in paragraph 6 of Schedule 7, with the exception of the information in sub-paragraph (o) and sub-paragraphs (u) to (w);

(i) the number of ZE cars and ZE vans of which the participant was the manufacturer and which were registered during the scheme year;

(ii) the number of NZE cars and NZE vans of which the participant was the manufacturer and which were registered during the scheme year;

(iii) the baseline for the purposes of the CCTS or VCTS;

(iv) the number of credits acquired by the participant under each of article 19(1), 19(2), 20, 51 and 52;

(v) the net number of allowances and, where applicable, credits in each of the Trading Schemes which each participant in the schemes acquired or disposed of through trading during the trading window following the scheme year;

(vi) the average of the specific emissions of CO₂ of the NZE cars, and of the NZE vans, of which the participant was the manufacturer and which were registered during the scheme year;

(d) in relation to each SPV manufacturer—

(i) the number of ZE SPVs of which the manufacturer is the manufacturer and which were registered during the scheme year, stating how many of those were ZE wheelchair accessible SPVs;

(ii) the number of credits acquired by the SPV manufacturer under each of articles 21(1), 21(2), 22, 53 and 54;

(iii) the number of credits in each of the CRTS or VRTS which the SPV manufacturer disposed of through trading during the trading window following the scheme year;

(e) the average of the specific emissions of CO₂ of all the NZE cars, and of all the NZE vans, registered during the scheme year.

(2) In paragraph (1)(c)(v), a reference to “trading” is a reference to trading allowances or credits under article 25, 25A, 26, 26A, 37, 57, 57A, 58, 58A or 69.

(3) In paragraph (1)(d)(iii), a reference to “trading” is a reference to disposing of credits through trading under article 26, 26A, 58 or 58A.

(4) The administrator may publish amended information at any time where it discovers any error or omission in the published information.

Power of administrator to require information from participants and SPV manufacturers

81

(1) The administrator may at any time require a participant in the Trading Schemes or an SPV manufacturer to provide information which is required by the administrator in order to administer the Trading Schemes by giving a notice to the participant or the manufacturer.

(2) Any notice given under paragraph (1) must—

(a) be in writing;

(b) identify the information required and the reason it is required; and

(3) A person to whom a notice is given under this article must comply with the requirement contained in the notice.

(4) The information which a person may be required to provide under this article includes information that, although not in the person’s possession, it is reasonable to require the person to obtain or compile for the purpose of administering the Trading Schemes.

Updating information provided with an application under Part 3 of Schedule 4 (low-volume participants)

82

A low-volume CRTS participant and a low-volume VRTS participant must notify the administrator without delay if there is a change in the information provided with the application made under Part 3 of Schedule 4 which affects the participant’s eligibility to be a low-volume CRTS participant or a low-volume VRTS participant, as the case may be.

Updating information provided with an application under Schedule 5 (pool participants)

83

(1) Each manufacturer which is a member of a pool participant in the Trading Schemes must notify the administrator without delay if there is a change to the identity of the manufacturer notified to the administrator as the contact point in accordance with paragraph 5 (c)(i) of Schedule 5.

(2) A notification under paragraph (1) must be accompanied by the evidence mentioned in paragraph 7 (b) of Schedule 5 in relation to the new manufacturer which will act as the contact point.

Manner of provision of information to administrator

84

(1) Any obligation of a participant in the Trading Schemes or an SPV manufacturer to provide information to, or to notify, the administrator must be complied with by providing the information, or making the notification—

(a) through a website of the administrator; or

(b) in another manner, in a case where the administrator determines that it is necessary to allow notification or the provision of information in that manner.

(2) This article is subject to article 81 (2)(c) (power of administrator to require information for Trading Scheme administration), article 86 (b) (power of administrator to require production of information or documents) and paragraph 9 (d) of Schedule 4 (form of application under that Schedule).

Part 5 — Monitoring compliance and enforcement

Powers of administrator in respect of monitoring compliance

85

(1) The powers of the administrator in this Part may only be exercised where the administrator reasonably believes there has been a failure by a participant in the Trading Schemes or an SPV manufacturer (referred to in this Part as “P”) to comply with a requirement of this Order.

(2) The administrator may authorise a person to exercise, on behalf of the administrator and in accordance with the terms of the authorisation, the administrator’s powers in this Part.

(3) A person authorised in accordance with paragraph (2) is referred to in this Part as an “authorised person”.

Power to require production of documents or provision of information

86

The administrator or an authorised person may, by a written notice given to P, require P—

(a) to provide the administrator or the authorised person with information or documents; and

(b) to provide such information or documents in the form specified in the notice and within such period, or at such time, as is specified in the notice.

Power to question officers of a company

87

The administrator or an authorised person may, by a written notice given to P, require P to make available any officer of a company believed to be able to give information relevant to an investigation into whether there has been a failure by P to comply with a requirement of this Order and require that officer—

(a) to attend at a place and time specified by the administrator or authorised person;

(b) to answer questions (in the absence of any person other than those whom the administrator or authorised person allows to be present and a person nominated by the officer being asked questions); and

Powers of entry, etc

88

The administrator or an authorised person may—

(a) enter any premises with a warrant issued in accordance with article 90, together with any equipment or material as may be required; and

(b) when entering premises by virtue of paragraph (a), be accompanied by such persons as appear to the administrator or authorised person to be necessary.

Seizure of documents or records

89

(1) The administrator or an authorised person exercising the power of entry under article 88 may seize any documents or records.

(2) Where the administrator or authorised person seizes documents or records under paragraph (1), they must—

(a) provide the occupier of the premises with a written record of any items which are seized; and

(b) retain any seized item for no longer than necessary, and so far as possible, in its original condition.

Warrant

90

(1) A justice may issue a warrant in relation to any premises for the purposes of article 88 (a) where the justice is satisfied that—

(a) there are reasonable grounds for the exercise of the power in that paragraph; and

(b) one or more of the conditions in paragraph (2) are fulfilled in relation to the premises.

(2) The conditions referred to in paragraph (1)(b) are that—

(a) the exercise of the power by consent in relation to the premises has been refused;

(b) a refusal of consent to the exercise of the power is reasonably expected;

(d) the occupier is temporarily absent from the premises and the case is one of urgency; or

(e) a request for admission to the premises would defeat the purpose of the entry.

(3) A warrant issued in accordance with this article continues to have effect until the purpose for which it was issued has been fulfilled.

(4) In paragraph (1), “justice” means—

(a) in England or Wales, a justice of the peace;

(b) in Scotland, a justice of the peace or sheriff;

Legal professional privilege

91

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