The Vehicle Emissions Trading Schemes Order 2023
Nothing in this Part requires any person to produce a document which that person would be entitled to withhold the production of on the grounds of legal professional privilege.
Enforcement notices
92
- (1) Where the administrator considers that a participant in the Trading Schemes or an SPV manufacturer has contravened, is contravening or is likely to contravene a requirement imposed by or under this Order, the administrator may give notice (an “enforcement notice”) to the participant or SPV manufacturer.
- (2) An enforcement notice must be given in writing and must set out—
- (a) the requirement that the administrator considers has been contravened, is being contravened or is likely to be contravened;
- (b) details of the contravention or likely contravention;
- (c) the steps that must be taken to remedy the contravention or to ensure that a contravention does not occur;
- (d) the period within which the steps must be taken and any updates which must be provided to the administrator about the steps taken;
- (e) information about rights of appeal.
- (3) A person to whom an enforcement notice is given must comply with the requirements of the notice within the period set out in the notice.
- (4) The administrator may withdraw an enforcement notice at any time by giving notice of the withdrawal to the person to whom the enforcement notice is given.
Part 6 — Civil penalties
Civil penalties: general
93
- (1) The administrator—
- (a) may impose a civil penalty in accordance with articles 97 to 106; and
- (b) where it does so, it must give written notice of such penalty (referred to in this Part as a “penalty notice”).
- (2) A penalty notice must specify—
- (a) the provision of this Order that is breached; and
- (b) information about rights of appeal.
- (3) In this Part—
- “block” means the restriction of the operation of a participant in the Trading Schemes’, or an SPV manufacturer’s, account in the registry, so that the participant or SPV manufacturer may not—trade allowances or credits;bank or borrow CRTS allowances, within the meaning of article 9;be treated as falling within article 13(4) or (6) (transitional allocation of CRTS allowances);acquire CCTS allowances under article 35;bank or borrow VRTS allowances within the meaning of article 41;be treated as falling within article 45(4) or (6) (transitional allocation of VRTS allowances);acquire VCTS allowances under article 67;be treated as a low-volume CRTS participant or low-volume VRTS participant in accordance with Schedule 4; ... make an application for the specific emissions of CO₂ of a vehicle to be determined in accordance with Part 6 of Schedule 3A; or make an application to be a pool participant in the Trading Schemes under Schedule 5;
- “financial year”, in relation to a participant in the Trading Schemes or an SPV manufacturer, has the meaning given in section 390 of the Companies Act 2006[^f00017];
- “publication” means to publish on a part of the registry which is accessible to the public—the name of a participant in the Trading Schemes or an SPV manufacturer, including, where a participant is a pool participant in the Trading Schemes, the name of each member of that pool participant; anddetails of the breach for which a civil penalty has been imposed;
- “turnover”, in relation to a participant in the Trading Schemes or an SPV manufacturer, means its turnover as defined in section 474(1) of the Companies Act 2006[^f00018], as if that section applied to participants in the Trading Schemes or SPV manufacturers, and excluding turnover arising outside the United Kingdom.
- (4) For so long as the operation of a pool participant in the Trading Schemes' account in the registry is restricted by a block, that participant continues to be treated as a pool participant in the Trading Schemes, even where the grant of an application by the administrator under Schedule 5 would otherwise be required.
- (5) In relation to a pool participant in the Trading Schemes—
- (a) its turnover for the purposes of paragraph (3) is the aggregate turnover of each of the members of the pool participant; and
- (b) a reference to its financial year is a reference to the financial year of the manufacturer identified to the administrator in accordance with—
- (i) paragraph 5(c)(i) of Schedule 5 (application to be treated as a pool participant) in the application made under that Schedule; or
- (ii) article 83(1) (updating information provided with application under Schedule 5).
Financial penalties: general
94
- (1) A penalty notice in respect of a financial penalty must specify—
- (a) that payment must be made to the administrator;
- (b) how payment must be made;
- (c) where no daily penalty applies or the total amount of the daily penalty can be determined at the date of the giving of the notice—
- (i) the total amount due;
- (ii) where applicable, how it has been calculated; and
- (iii) the date by which it must be paid; and
- (d) where a daily penalty rate applies and the total amount of the daily penalty cannot be determined at the date of the giving of the notice—
- (i) the amount of the initial penalty; and
- (ii) details of the applicable daily rate.
- (2) Where paragraph (1)(d) applies and the total amount of the daily penalty can be determined after the date of giving of the notice, the administrator must give a further notice to the person liable to the penalty which complies with paragraph (1)(c).
- (3) The administrator must pay any financial penalty received into the consolidated fund.
- (4) In England and Wales, a financial penalty is recoverable as if it were payable under an order of the county court in England and Wales.
- (5) In Scotland, a financial penalty may be enforced in the same manner as an extract registered decree arbitral bearing a warrant of execution issued by the sheriff court of any sheriffdom in Scotland.
- (5A) In Northern Ireland, a financial penalty is recoverable as if it were payable under an order of the County Court.
- (6) Where action is taken under paragraph (4) for the recovery of a sum payable as a financial penalty pursuant to this Order, the financial penalty is, for England and Wales, to be treated for the purposes of section 98 of the Courts Act 2003[^f00019] (register of judgments and orders etc.) as if it were a judgment entered in the county court.
- (7) Where action is taken under paragraph (5A) for the recovery of a sum payable as a financial penalty pursuant to this Order, the financial penalty is, for Northern Ireland, to be treated for the purposes of Article 116 of the Judgments Enforcement (Northern Ireland) Order 1981 (register of judgments) as if it were a judgment in respect of which an application has been accepted under Article 22 or 23(1) of that Order.
Non-financial penalties: general
95
- (1) The administrator may impose the penalty of a block until—
- (a) the failure is remedied; and
- (b) any financial penalty imposed in respect of the same failure is paid.
- (2) Publication lasts until—
- (a) the failure is remedied; and
- (b) any financial penalty imposed in respect of the same failure is paid.
- (3) The administrator must remove a block or publication promptly when the breach to which it relates has been remedied and any associated financial penalty is paid.
- (4) A civil penalty other than a financial penalty has effect from the date of service of the penalty notice, unless the notice provides otherwise.
Waiver and modification of civil penalties
96
- (1) Where the administrator considers appropriate, the administrator may—
- (a) waive a penalty;
- (b) allow additional time to pay a financial penalty;
- (c) impose a lower financial penalty than the amount provided for in articles 97 to 106 or substitute such a lower financial penalty where one has already been imposed; or
- (d) modify the application of a publication or a block.
- (2) Where at any time before a financial penalty is due to be paid the administrator ceases to be satisfied that the person is liable for that penalty, the administrator may serve a further notice on that person to—
- (a) withdraw the penalty notice; or
- (b) modify the penalty notice by substituting a lower penalty.
- (3) Before exercising a power in this article, the administrator must consult the relevant national authorities[^f00020].
Failure to make a payment to account for activity in the Trading Schemes
97
- (1) The administrator may impose the penalties in paragraph (2) where a participant in the Trading Schemes fails to make a payment which is due in accordance with a payment notice given under article 28, 39, 60 or 71.
- (2) The penalties are—
- (a) the financial penalty of—
- (i) the amount of the payment which was specified in the payment notice and which remains outstanding; and
- (ii) a daily penalty at a daily rate which is the sum of £750 and 0.75% of the amount of the payment specified in the payment notice, beginning with the day after the day on which that payment was due;
- (b) publication; and
- (c) a block.
Failure to provide information under article 73
98
- (1) The administrator may impose the penalties in paragraph (2) where a participant in the Trading Schemes fails to comply with a requirement in article 73 to provide, or to ensure that the administrator has available to it, the information or evidence specified in—
- (a) article 73(5)(a) to (d) (SPVs, car clubs and ZE car or van warranties);
- (b) paragraph 1(g), 6(g)12(c) or 13(c) of Schedule 7 (specific emissions of CO₂ of a car, van or SPV);
- (c) paragraph 1(i) or 6(k) of Schedule 7 (fuel type and fuel mode of a car, van or SPV);
- (d) paragraph 1(l) or 6(n) of Schedule 7 (code for any eco-innovations);
- (e) paragraph 1(r) or 6(r) of Schedule 7 (electric range of a car, van or SPV, where applicable).
- (2) The penalties are—
- (a) the financial penalty of—
- (i) £7,500;
- (ii) £15,000 for each car to which a failure in paragraph (1) relates;
- (iii) £15,000 for each ZE SPV of category M1 to which a failure in paragraph (1) relates;
- (iv) £18,000 for each van to which a failure in paragraph (1) relates; and
- (v) £18,000 for each ZE SPV which is of category N1, or which is of category N2 and which falls within the description in paragraph (c) of the definition in “van” in article 3(1), to which a failure in paragraph (1) relates;
- (b) publication; and
- (c) a block.
- (3) The administrator may impose the penalties in paragraph (4) where a participant in the Trading Schemes fails to comply with a requirement in article 73 to provide, or to ensure that the administrator has available to it, any information other than that specified in paragraph (1).
- (4) The penalties are—
- (a) the financial penalty of £750; and
- (b) publication.
Failure to maintain records
99
- (1) The administrator may impose the penalties in paragraph (2) where a participant in the Trading Schemes fails to maintain and audit its records, as required by article 75, or where an SPV manufacturer fails to maintain and audit its records, as required by article 76.
- (2) The penalties are—
- (a) the financial penalty of £7,500;
- (b) publication; and
- (c) a block.
Failure to provide information under article 81 (information required for the purposes of administering the Trading Schemes)
100
- (1) The administrator may impose the penalties in paragraph (2) where—
- (a) the administrator has required a participant in the Trading Schemes or an SPV manufacturer to provide information in a notice in accordance with article 81; and
- (b) the participant or manufacturer has failed to comply with the notice by the time specified in it.
- (2) The penalties are—
- (a) the financial penalty of £7,500; and
- (b) publication.
Failure to provide information under article 86 (information required where suspected failure to comply with this Order)
101
- (1) The administrator may impose the penalties in paragraph (2) where—
- (a) the administrator or an authorised person has given notice to a participant in the Trading Schemes or an SPV manufacturer under article 86; and
- (b) the participant or SPV manufacturer has failed to comply with the notice by the time specified in it.
- (2) The penalties are—
- (a) the financial penalty of £750,000 or, if lower, 0.5% of the turnover of the participant in the Trading Schemes or the SPV manufacturer for its financial year ending during the scheme year to which the failure relates;
- (b) publication; and
- (c) a block.
Failure to make officer available for questioning
102
- (1) The administrator may impose the penalties in paragraph (2) where—
- (a) the administrator or an authorised person has given notice to a participant in the Trading Schemes or an SPV manufacturer under article 87 to make an officer available for questioning in accordance with that article; and
- (b) that officer was not made available in accordance with the notice by the time specified in it.
- (2) The penalties are—
- (a) the financial penalty of £75,000;
- (b) a block; and
- (c) publication.
Refusal to allow access to premises
103
- (1) The administrator may impose the penalties in paragraph (2) where a person in control of any premises refuses the administrator or an authorised person access to those premises, or intentionally obstructs the administrator or an authorised person from accessing to those premises, contrary to article 88.
- (2) The penalties are—
- (a) the financial penalty of £75,000;
- (b) a block; and
- (c) publication.
Failure to comply with enforcement notice
104
- (1) The administrator may impose the penalty in paragraph (2) where a participant in the Trading Schemes or an SPV manufacturer fails to comply with the requirements of an enforcement notice given under article 92.
- (2) The penalty is the financial penalty of—
- (a) £4,500; and
- (b) a daily penalty at a daily rate of £100, beginning with the day after the day by which the participant in the Trading Schemes or SPV manufacturer was to have taken steps to comply with the requirements of the enforcement notice, up to a maximum of £3,000.
Provision of false or misleading information: participants in the Trading Schemes
105
- (1) The administrator may impose the penalties in paragraph (2) where a participant in the Trading Schemes provides false or misleading information under an obligation on a participant in article 73 (provision of information to administrator).
- (2) The penalties are—
- (a) where the false or misleading information is the information or evidence specified in article 98(1), or where the false or misleading information consists of a failure to ensure that the administrator is aware of every car, van and SPV of which the participant in the Trading Schemes is the manufacturer and which is registered during a scheme year, the financial penalty of—
- (i) £7,500;
- (ii) £15,000 for each car to which the false or misleading information relates;
- (iii) £15,000 for each ZE SPV of category M1 to which the false or misleading information relates;
- (iv) £18,000 for each van to which the false or misleading information relates; and
- (v) £18,000 for each ZE SPV which is of category N1, or which is of category N2 and which falls within the description in paragraph (c) of the definition in “van” in article 3(1), to which the false or misleading information relates;
- (b) where the false or misleading information is information other than that described in sub-paragraph (a), the financial penalty of £750;
- (c) publication; and
- (d) a block.
- (3) The administrator may impose the penalties in paragraph (4) where a participant in the Trading Schemes provides false or misleading information in a notification under article 78 (error notification).
- (4) The penalties are—
- (a) where the false or misleading information is that specified in paragraph 1(g), (i), (l) or (r) of Schedule 7 (specific emissions of CO₂, fuel type and fuel mode, eco-innovations and electric range), the financial penalty of—
- (i) £7,500;
- (ii) £15,000 for each car to which the false or misleading information relates; and
- (iii) £15,000 for each ZE SPV of category M1 to which the false or misleading information relates;
- (b) where the false or misleading information is that specified in paragraph 6(g), (k), (n) or (r), or paragraph 12(c) or 13(c) of Schedule 7 (specific emissions of CO₂, fuel type and fuel mode, eco-innovations and electric range), the financial penalty of—
- (i) £7,500;
- (ii) £18,000 for each van to which the false or misleading information relates; and
- (iii) £18,000 for each ZE SPV which is of category N1, or which is of category N2 and which falls within the description in paragraph (c) of the definition in “van” in article 3(1), to which the false or misleading information relates;
- (c) where the false or misleading information is information other than that referred to in sub-paragraph (a) or (b), the financial penalty of £750;
- (d) publication; and
- (e) a block.
- (5) The administrator may impose the penalties in paragraph (6) where a participant in the Trading Schemes provides false or misleading information in response to a notice given by the administrator under article 81 (power of administrator to require information for purposes of Trading Schemes).
- (6) The penalties are—
- (a) the financial penalty of £7,500; and
- (b) publication.
- (7) The administrator may impose the penalties in paragraph (8) where a participant in the Trading Schemes provides false or misleading information in response to a notice given by the administrator or an authorised person under article 86 (power to require information where suspected failure to comply with this Order).
- (8) The penalties are—
- (a) the financial penalty of £750,000 or, if lower, 0.5% of the turnover of the participant in the Trading Schemes for its financial year ending during the scheme year to which the false or misleading information relates;
- (b) publication; and
- (c) a block.
- (9) The administrator may impose the penalties in paragraph (10) where a participant in the Trading Schemes provides false or misleading information in an application made under—
- (a) Part 3 of Schedule 4 (application to be a low-volume CRTS or VRTS participant); or
- (b) Schedule 5 (application to be pool participant in the Trading Schemes).
- (10) The penalties are—
- (a) the financial penalty of £75,000; and
- (b) publication.
- (11) The administrator may impose the penalties in paragraph (12) on a participant in the Trading Schemes where an officer of a company who is made available by that participant in accordance with article 87 (power to question officers of a company) provides false or misleading information when questioned under that article.
- (12) The penalties are—
- (a) the financial penalty of £750,000 or, if lower, 0.5% of the turnover of the participant in the Trading Schemes for its financial year ending during the scheme year to which the false or misleading information relates;
- (b) publication; and
- (c) a block.
Provision of false or misleading information: SPV manufacturers
106
- (1) The administrator may impose the penalties in paragraph (2) where an SPV manufacturer provides false or misleading information under an obligation on an SPV manufacturer in article 74 (provision of information to the administrator).
- (2) The penalties are—
- (a) where the false or misleading information is the information or evidence specified in article 74(4)(a) to (d), the financial penalty of—
- (i) £7,500;
- (ii) £15,000 for each ZE SPV of category M1 to which the false or misleading information relates; and
- (iii) £18,000 for each ZE SPV which is of category N1, or which is of category N2 and which falls within the description in paragraph (c) of the definition in “van” in article 3(1), to which the false or misleading information relates;
- (b) where the false or misleading information is information other than that specified in sub-paragraph (a), the financial penalty of £750;
- (c) publication; and
- (d) a block.
- (3) The administrator may impose the penalties in paragraph (4) where an SPV manufacturer provides false or misleading information in a notification given by an SPV manufacturer under article 78 (error notification).
- (4) The penalties are—
- (a) where the false or misleading information is that specified in paragraph 1(i) or (r) of Schedule 7 (fuel type and fuel mode and electric range), the financial penalty of—
- (i) £7,500; and
- (ii) £15,000 for each ZE SPV of category M1 to which the false or misleading information relates;
- (b) where the false or misleading information is that specified in paragraph 6(k) or (r) of Schedule 7 (fuel type and fuel mode and electric range), the financial penalty of—
- (i) £7,500; and
- (ii) £18,000 for each ZE SPV which is of category N1, or which is of category N2 and which falls within the description in paragraph (c) of the definition in “van” in article 3(1), to which the false or misleading information relates;
- (c) where the false or misleading information is information other than that mentioned in sub-paragraph (a) or (b), the financial penalty of £750;
- (d) publication; and
- (e) a block.
- (5) The administrator may impose the penalties in paragraph (6) where an SPV manufacturer provides false or misleading information in response to a notice given by the administrator under article 81 (power to require information for purposes of Trading Schemes).
- (6) The penalties are—
- (a) the financial penalty of £7,500; and
- (b) publication.
- (7) The administrator may impose the penalties in paragraph (8) where an SPV manufacturer provides false or misleading information in response to a notice given by the administrator or an authorised person under article 86 (power of administrator to require information where suspected failure to comply with this Order).
- (8) The penalties are—
- (a) the financial penalty of £750,000 or, if lower, 0.5% of the turnover of the SPV manufacturer for its financial year ending during the scheme year to which the false or misleading information relates;
- (b) publication; and
- (c) a block.
Part 7 — Appeals
Decisions to which this Part applies
107
This Part applies to the following decisions of the administrator—
- (a) a decision under article 11(4), 32(3), 43(4) or 64(3) that a person is the manufacturer of a car or a van, as the case may be;
- (b) a decision to give a notice under paragraph (2)(a) of article 20, 22, 52 or 54 in relation to the use of a vehicle by a car club;
- (c) a decision not to reflect in the final information notified to a participant in the Trading Schemes or an SPV manufacturer under article 79 any error which that participant or manufacturer has notified to the administrator accordance with article 78;
- (ca) a decision under paragraph 10(b)(i) of Schedule 3A to reject an application by a CCTS participant for the specific emissions of CO₂ of a car to be determined in accordance with Part 6 of Schedule 3A, or to reject an application by a VCTS participant for the specific emissions of CO₂ of a van to be determined in accordance with that Part;
- (d) a decision under paragraph 12 of Schedule 4 to reject an application by a CRTS participant to be a low-volume CRTS participant, or to reject an application by a VRTS participant to be a low-volume VRTS participant;
- (e) a decision under paragraph 8 of Schedule 5 to reject an application made under that Schedule by two or more manufacturers to be treated as a pool participant in the Trading Schemes;
- (f) a decision that a trade has not taken place under article 25(7), 26(5), 37(7), 57(7), 58(5) or 69(7);
- (g) a decision to give a payment notice under article 28(3), 39(4), 60(4) or 71(4);
- (h) a decision to give an enforcement notice under article 92;
- (i) a decision to impose a civil penalty under Part 6.
Appeal against decisions of the administrator
108
- (1) A participant in the Trading Schemes or an SPV manufacturer may appeal to the First-tier tribunal against a decision of the administrator to which this Part applies, on the ground that—
- (a) the decision was based on an error of fact;
- (b) the decision was wrong in law;
- (c) in the case of a financial penalty, that the amount of the penalty is unreasonable;
- (d) in the case of a non-financial penalty, that the nature of the penalty is unreasonable; or
- (e) that the decision was wrong or unreasonable for any other reason.
- (2) The First-tier tribunal may confirm the administrator’s decision, cancel it or substitute its own decision.
- (3) Until any appeal made under this article against a decision mentioned in article 107(a) to (h) has been finally determined or withdrawn, no civil penalty may be imposed under Part 6 in relation to the decision.
- (4) Until any appeal made under this article against a decision to impose a civil penalty under Part 6 has been finally determined or withdrawn, the civil penalty is suspended.
- (5) If the outcome of an appeal made under this Part is that the administrator incorrectly treated a participant in the Trading Schemes or an SPV manufacturer as being, or as not being, entitled to an allowance or a credit, the administrator must take appropriate steps to correct the position in the registry.
Part 8 — Revocation, amendment and saving of EU Regulations relating to CO2 emission limits
Interpretation of Part 8
109
In this Part—
- “Regulation (EU) 1014/2010” means Commission Regulation (EU) No 1014/2010 of 10 November 2010 on monitoring and reporting of data on the registration of new passenger cars pursuant to Regulation (EC) No 443/2009 of the European Parliament and of the Council[^f00021];
- “Regulation (EU) 63/2011” means Commission Regulation (EU) No 63/2011 of 26 January 2011 laying down detailed provisions for the application for a derogation from the specific CO₂ emission targets pursuant to Article 11 of Regulation (EC) No 443/2009 of the European Parliament and of the Council[^f00022];
- “Regulation (EU) 293/2012” means Commission Implementing Regulation (EU)293/2012 of 3 April 2012 on monitoring and reporting of data on the registration of new light commercial vehicles pursuant to Regulation (EU) No510/2011 of the European Parliament and of the Council[^f00023];
- “Regulation (EU) 114/2013” means Commission Delegated Regulation (EU) No114/2013 of 6 November 2012 supplementing Regulation (EU) No510/2011 of the European Parliament and of the Council with regard to rules for the application for a derogation from the specific CO₂ emissions targets for new light commercial vehicles[^f00024];
- “Regulation (EU) 2017/1152” means Commission Implementing Regulation (EU) 2017/1152 of 2 June 2017 setting out a methodology for determining the correlation parameters necessary for reflecting the change in the regulatory test procedure with regard to light commercial vehicles and amending Implementing Regulation (EU) No 293/2012[^f00025];
- “Regulation (EU) 2017/1153” means Commission Implementing Regulation (EU) 2017/1153 of 2 June 2017 setting out a methodology for determining the correlation parameters necessary for reflecting the change in the regulatory test procedure and amending Regulation (EU) No 1014/2010[^f00026].
Partial revocation and amendment of Regulation (EU) 2019/631
110
- (1) Article 2(4), Articles 4, 5, 6, 7, 7a, 8, 9, 10, and 14 of, and Annexes 1 to 5 to, Regulation (EU) 2019/631 are revoked in relation to Great Britain, subject to the savings in article 116.
- (2) Regulation (EU) 2019/631 is amended as follows.
- (3) In Article 1 (subject matter and objectives)—
- (a) in paragraph 1, after “new light commercial vehicles” insert “registered in Northern Ireland”;
- (b) in paragraph 2—
- (i) in both places where it occurs, for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (ii) for “in the United Kingdom” substitute “in Northern Ireland”;
- (iii) omit the words “in domestic law, and as that Regulation has effect”;
- (c) in paragraphs 4 and 5, in each place where it occurs, for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (d) at the end insert—
(8) This Regulation establishes an application process for the approval of CO₂ savings to be achieved through the use of innovative technologies, or a combination of innovative technologies, fitted to new passenger cars or new light commercial vehicles registered in the United Kingdom.
- (4) In Article 2 (scope)—
- (a) for paragraph 1 substitute—
(1) This paragraph and paragraphs 2, 3 and 5 of this Article, and Articles 1, 3, 11, 12, 13, 15, 17, 18 and 19 of this Regulation apply to the whole of the United Kingdom. Those paragraphs and Articles apply to the following vehicles— (a) category M1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval) (“passenger cars”), which are registered in the United Kingdom for the first time and which have not previously been registered outside the United Kingdom (“new passenger cars”); (b) category N1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 (“light commercial vehicles”), as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, as that Regulation has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which are registered in the United Kingdom for the first time and which have not previously been registered outside the United Kingdom (“new light commercial vehicles”). In the case of zero-emission vehicles of category N with a reference mass exceeding 2 610 kg or 2 840 kg, as the case may be, they shall, from 1 January 2025, for the purposes of this Regulation and without prejudice to Regulation (EU) 2018/858 and Regulation (EC) No 715/2007, as those Regulations have effect in domestic law (in respect of vehicles with GB type-approval) and, where relevant, as those Regulations have effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), be counted as UK light commercial vehicles falling within the scope of this Regulation if the excess reference mass is due only to the mass of the energy storage system.
- (b) after paragraph 1 insert—
(1A) This paragraph and paragraphs 2A, 4 and 5A of this Article, and Articles 4, 5, 6, 7, 7a, 8, 9, 10 and 14 of, and Annexes 1 to 5 to, this Regulation apply in relation to Northern Ireland only. Those paragraphs, Articles and Annexes apply to the following vehicles— (a) category M1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (“NI passenger cars”) which are registered in Northern Ireland for the first time and which have not previously been registered outside Northern Ireland (“new NI passenger cars”); (b) category N1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol, with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 (“NI light commercial vehicles”), which are registered in Northern Ireland for the first time and which have not previously been registered outside Northern Ireland (“new NI light commercial vehicles”). In the case of zero-emission vehicles of category N with a reference mass exceeding 2 610 kg or 2 840 kg, as the case may be, they shall, from 1 January 2025, for the purposes of this Regulation and without prejudice to Regulation (EU) 2018/858 and Regulation (EC) No 715/2007, as those Regulations have effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol, be counted as NI light commercial vehicles falling within the scope of this Regulation if the excess reference mass is due only to the mass of the energy storage system.
- (c) at the beginning of paragraph 2 for “A” substitute “For the purposes of paragraph 1, a”;
- (d) after paragraph 2 insert—
(2A) For the purposes of paragraph 1A, a previous registration outside Northern Ireland made less than three months before registration in Northern Ireland shall not be taken into account.
- (e) in paragraph 5 for “This Regulation” substitute “Paragraph 1”;
- (f) after paragraph 5 insert—
(5A) Paragraph 1A shall not apply to any vehicle registered in Northern Ireland which is permanently removed from Northern Ireland within three months after that registration.
- (g) omit paragraph 6.
- (5) In Article 3(1) (definitions)—
- (a) in point (g) (definition of “mass in running order”) omit “in point 2.6 of Annex 1 to Commission Implementing Regulation (EU) 2020/683, as it has effect in domestic law, or, as the case may be,”;
- (b) in point (i) (definition of “footprint”) omit “points 2.1 and 2.3 of Annex 1 to Commission Implementing Regulation (EU) 2020/683, as it has effect in domestic law or, as the case may be,”;
- (c) in point (k) (definition of “United Kingdom fleet-wide target”)—
- (i) for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (ii) for “all new passenger cars or all new light commercial vehicles” substitute “all new NI passenger cars or all new NI light commercial vehicles”;
- (d) in point (l) (definition of “test mass”) omit “point 3.2.25 of Annex XXI to Regulation (EU) 2017/1151, as it has effect in domestic law or, as the case may be,”;
- (e) after point (p) insert—
(pa) “NI passenger cars” and “new NI passenger cars” have the meanings given in Article 2(1A)(a); (pb) “NI light commercial vehicles” and “new NI light commercial vehicles” have the meanings given in Article 2(1A)(b);
- (6) In Article 7 (monitoring and reporting of average emissions)—
- (a) in paragraph 1—
- (i) for “each new passenger car and each new light commercial vehicle” substitute “each new NI passenger car and each new NI light commercial vehicle”;
- (ii) for “the United Kingdom”, in both places where it occurs, substitute “Northern Ireland”;
- (iii) for “passenger cars” substitute “NI passenger cars”;
- (iv) omit “as it has effect in domestic law, or as the case may be,”;
- (b) in paragraph 4 for “new passenger cars and of new light commercial vehicles” substitute “new NI passenger cars and of new NI light commercial vehicles”;
- (c) in paragraph 11, in both places where it occurs, omit “in domestic law or, as the case may be, as that Regulation has effect”.
- (7) In Article 8 (excess emissions premium), in paragraph 2, for “new passenger cars or new light commercial vehicles” substitute “new NI passenger cars or new NI light commercial vehicles”.
- (8) In Article 9 (publication of performance of manufacturers)—
- (a) in paragraph 1, in each place where it occurs, for “all new passenger cars and new light commercial vehicles registered in the United Kingdom” substitute “all new NI passenger cars and new NI light commercial vehicles registered in Northern Ireland”;
- (b) in paragraph 3(a) for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”.
- (9) In Article 10(4) (derogations for certain manufacturers), in point (c), omit “in domestic law or, as the case may be, as that Regulation has effect”.
- (10) In Article 11 (eco-innovation), in paragraph 1—
- (a) for “average specific emissions of CO₂ of a manufacturer” substitute “CO₂ emissions of a new passenger car or a new light commercial vehicle”;
- (b) for “average specific emissions of CO₂ of manufacturers” substitute “CO₂ emissions of new passenger cars or new light commercial vehicles”.
- (11) In Article 15 (review and report), in paragraph 3—
- (a) for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (b) for “passenger cars and light commercial vehicles” substitute “NI passenger cars and NI light commercial vehicles”.
- (12) In Part A of Annex 1 (specific emissions targets for passenger cars)—
- (a) in point 4 for “mass in running order (M) of the new passenger cars” substitute “mass in running order (M) of the new NI passenger cars”;
- (b) in point 6—
- (i) in each place where it occurs, for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (ii) in each place where it occurs, for “registered in 2021” substitute “registered in the United Kingdom in 2021”;
- (iii) in point 6.0, for “registered in 2020” substitute “registered in the United Kingdom in 2020”;
- (iv) in point 6.3, for “new passenger cars registered in the relevant calendar year” substitute “new NI passenger cars registered in the relevant calendar year”.
- (13) In Part B of Annex 1 (specific emissions targets for light commercial vehicles)—
- (a) in each place where it occurs, for “United Kingdom fleet-wide” substitute “Northern Ireland fleet-wide”;
- (b) in each place where it occurs, for “registered in 2021” substitute “registered in the United Kingdom in 2021”;
- (c) in point 4, for “mass (M) of the new light commercial vehicles” substitute “mass (M) of the new NI light commercial vehicles”;
- (d) in point 6.0, for “registered in 2020” substitute “registered in the United Kingdom in 2020”;
- (e) in point 6.2.1, for “registered in the relevant calendar year” substitute “registered in Northern Ireland in the relevant calendar year”;
- (f) in point 6.3.1, in each place where it occurs, for “new light commercial vehicles” substitute “new NI light commercial vehicles”;
- (g) in point 6.3.2, in each place where it occurs, for “new light commercial vehicles” substitute “new NI light commercial vehicles”.
- (14) In Part A of Annex 2 (collection of data on new passenger cars and determination of CO₂ emissions monitoring information)—
- (a) in the heading, for “new passenger cars” substitute “new NI passenger cars”;
- (b) in point 1—
- (i) for “new passenger car” substitute “new NI passenger car”;
- (ii) for “the United Kingdom” substitute “Northern Ireland”;
- (c) in point 2 for “passenger car” substitute “NI passenger car”;
- (d) in point 3—
- (i) in point 3(a) for “new passenger cars subject to GB type-approval, UK (NI) type-approval” substitute “new NI passenger cars subject to UK (NI) type-approval”;
- (ii) in point 3(b) for “passenger cars” substitute “NI passenger cars”;
- (iii) in point 3(c) omit “GB type-approval of small series and”.
- (15) In Part B of Annex 2 (format for the transmission of data)—
- (a) omit “GB type-approval,”;
- (b) omit “GB type-approval of small series and”.
- (16) In Part A of Annex 3 (collection of data on new light commercial vehicles and determination of CO₂ emissions monitoring information)—
- (a) in the heading, for “new light commercial vehicles” substitute “new NI light commercial vehicles”;
- (b) in point 1.1, in the words before point (a)—
- (i) omit “GB type-approved,”;
- (ii) for “new light commercial vehicle” substitute “new NI light commercial vehicle”;
- (iii) for “the United Kingdom” substitute “Northern Ireland”;
- (c) in point 1.1(q) omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (d) in point 1.2.1.2, omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (e) in point 1.2.2, in both places where it occurs, omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (f) in point 1.2.4, in both places where it occurs, omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (g) in point 1.2.4, omit “GB type-approval,”;
- (h) in point 2, for “light commercial vehicle” substitute “NI light commercial vehicle”;
- (i) in point 3—
- (i) in each place where it occurs, for “new light commercial vehicles” substitute “new NI light commercial vehicles”;
- (ii) omit “GB type-approval,”;
- (iii) omit “GB type-approval of small series and”.
- (17) In Part B of Annex 3 (methodology for determining CO₂ monitoring information for new light commercial vehicles)—
- (a) in each place where it occurs, including the heading and cross-heading, for “new light commercial vehicles” substitute “new NI light commercial vehicles”;
- (b) in point 1—
- (i) for “the United Kingdom” substitute “Northern Ireland”;
- (ii) omit “GB type-approval,”;
- (iii) omit “GB type-approval of small series and”.
- (18) In Part C of Annex 3 (formats for transmission of data)—
- (a) in Section 1—
- (i) omit “GB type-approval,”;
- (ii) omit “GB type-approval of small series and”;
- (b) in Section 2, in note (2) omit “GB type-approval of small series or”.
Amendment of Regulation (EU) 725/2011 (eco-innovation for passenger cars)
111
- (1) Regulation (EU) 725/2011 is amended as follows.
- (2) In Article 11(1), for “benefit from a reduction of its average specific CO₂ emissions for the purpose meeting its specific emissions target by means of the CO2 savings from an eco-innovation” substitute “demonstrate certified CO₂ savings from an eco-innovation”.
- (3) In Article 12(2), for “decide not to take the certified CO₂ savings into account for the calculation of the average specific emissions of that manufacturer for the following calendar year” substitute—
— (a) in relation to Northern Ireland, decide not to take the certified CO₂ savings into account for the calculation of the average specific emissions of that manufacturer for the following calendar year; and (b) in relation to Great Britain, give notice of that fact to the administrator of the Non-Zero Emission Car CO₂ Trading Scheme, for the purposes of article 36(3) of the Vehicle Emissions Trading Schemes Order 2023 (measuring activity in the scheme)
- (4) In Article 12(3), after “taken into account”, insert “under point (a) of paragraph 2, or in relation to whom a notice is given under point (b) of that paragraph,”.
Amendment of Regulation (EU) 427/2014 (eco-innovations for light commercial vehicles)
112
- (1) Regulation (EU) 427/2014 is amended as follows.
- (2) In Article 11(1), for “benefit from a reduction of its average specific CO₂ emissions for the purpose meeting its specific emissions target by means of the CO2 savings from an eco-innovation” substitute “demonstrate certified CO₂ savings from an eco-innovation”.
- (3) In Article 12(2), for “decide not to take the certified CO₂ savings into account for the calculation of the average specific emissions of that manufacturer for the following calendar year” substitute—
— (a) in relation to Northern Ireland, decide not to take the certified CO₂ savings into account for the calculation of the average specific emissions of that manufacturer for the following calendar year; and (b) in relation to Great Britain, give notice of that fact to the administrator of the Non-Zero Emission Van CO₂ Trading Scheme, for the purposes of article 68(3) of the Vehicle Emissions Trading Schemes Order 2023 (measuring activity in the scheme)
- (4) In Article 12(3), after “taken into account”, insert “under point (a) of paragraph 2, or in relation to whom a notice is given under point (b) of that paragraph,”.
Partial revocation and amendment of Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 (monitoring and reporting of data on vehicle registration)
113
- (1) Regulation (EU) 1014/2010 and Regulation (EU) 293/2012 are revoked in relation to Great Britain, subject to the savings in article 116.
- (2) Regulation (EU) 1014/2010 is amended as follows—
- (a) in Article 1, in both places where it occurs, omit “in domestic law and as that Regulation has effect”;
- (b) in Article 3(1) (data sources)—
- (i) for “passenger car” substitute “NI passenger car”;
- (ii) omit “in domestic law and as that Regulation has effect”;
- (c) in Article 7(1) (vehicles not covered by GB, UK (NI) or EU type-approval)—
- (i) in the heading omit “GB,”;
- (ii) for “passenger cars” substitute “NI passenger cars”;
- (iii) omit “GB type-approval of small series or”;
- (iv) in the first place where it occurs, omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (v) omit “Article 45 of Regulation (EU) 2018/858 as it has effect in domestic law or, as the case may be, in accordance with”;
- (vi) for “the United Kingdom” substitute “Northern Ireland”;
- (d) in Article 7(2)(b) omit “GB type-approval of small series or”;
- (e) in Article 8(1), in point (b) omit “Commission Regulation (EU) No 19/2011, as it has effect domestic law, or”.
- (3) Regulation (EU) 293/2012 is amended as follows—
- (a) in Article 1, in point (a) (subject matter), for “light commercial vehicles as referred to in Article 2(1) of Regulation (EU) No 510/2011” substitute “NI light commercial vehicles as referred to in Article 2(1A)(b) of Regulation (EU) 2019/631”;
- (b) in Article 2 omit “in domestic law and as that Regulation has effect”;
- (c) in Article 4(1) (data sources) for “light commercial vehicle” substitute “NI light commercial vehicle”;
- (d) in Article 8 (vehicles not covered by GB, UK (NI) or EU type-approval), in the heading omit “GB,”;
- (e) in Article 8—
- (i) for “light commercial vehicles” substitute “NI light commercial vehicles”;
- (ii) omit “GB type-approval of small series and”;
- (iii) in the first place where it occurs, omit “in domestic law or, as the case may be, as that Regulation has effect”;
- (iv) omit “Article 45 of Regulation (EU) 2018/858, as it has effect in domestic law or, as the case may be,”;
- (v) for “the United Kingdom” substitute “Northern Ireland”;
- (f) in Article 8, omit “GB type-approval of small series or”;
- (g) in Article 10(3) (additional information) for “the United Kingdom” substitute “Northern Ireland”;
- (h) in Article 10a(1) (notification of errors by manufacturers) omit “GB type-approval,”.
Partial revocation and amendment of Regulation (EU) 63/2011 and Regulation (EU) 114/2013 (derogations)
114
- (1) Regulation (EU) 63/2011 and Regulation (EU) 114/2013 are revoked in relation to Great Britain.
- (2) Regulation (EU) 63/2011 is amended as follows—
- (a) in Article 5 (specific emissions target and reduction potential), in point (b) of paragraph 3, for “passenger cars” substitute “NI passenger cars”;
- (b) in Annex 1 (standard format of derogation application)—
- (i) in point 6 for “passenger cars to be launched on the United Kingdom market” substitute “NI passenger cars to be launched on the Northern Ireland market”;
- (ii) in point 8.2.2 for “United Kingdom market” substitute “Northern Ireland market”;
- (iii) in point 8.2.3 for “United Kingdom market” substitute “Northern Ireland market”;
- (c) in Annex 2 (standard format of derogation application), in point 5, in the words before point 5.1, for “United Kingdom” substitute “Northern Ireland”.
- (3) Regulation (EU) 114/2013 is amended as follows—
- (a) in Article 5 (specific emissions target and reduction potential)—
- (i) in point (f) of paragraph 2, in both places where it occurs, for “light commercial vehicles” substitute “NI light commercial vehicles”;
- (ii) in point (b) of paragraph 3, for “light commercial vehicles” substitute “NI light commercial vehicles”;
- (b) in Annex 1 (standard format of derogation application)—
- (i) in point 7, in the heading, for “United Kingdom market” substitute “Northern Ireland market”;
- (ii) in point 9.2.2 for “United Kingdom market” substitute “Northern Ireland market”;
- (iii) in point 9.2.3 for “United Kingdom market” substitute “Northern Ireland market”.
Revocation of Regulation (EU) 2017/1152 and Regulation (EU) 2017/1153
115
Regulation (EU) 2017/1152 and Regulation (EU) 2017/1153 are revoked.
Savings for monitoring and compliance in relation to Great Britain
116
- (1) In this article—
- “amendments” means the amendments made by articles 110 and 113;
- “EU target” means a manufacturer’s specific emissions target calculated using vehicles of the manufacturer first registered in the European Union in the calculations in points 1 to 3 of Part A or B of Annex I to Regulation (EU) 2019/631 in accordance with article 116(4);
- “old scheme year” means a calendar year occurring during the period beginning with 1st January 2021 and ending with 31st December 2023;
- “revocations” means the revocations effected by article 110(1) and article 113(1);
- “specific emissions obligation” means the duty imposed on a manufacturer by Article 4 of Regulation (EU) 2019/631;
- “UK target” means a manufacturer’s specific emissions target calculated using vehicles of the manufacturer first registered in the United Kingdom in the calculations in points 1 to 3 of Part A or B of Annex I to Regulation (EU) 2019/631 in accordance with article 116(4);
- (2) The amendments and revocations do not affect—
- (a) the operation of the specific emissions obligation in relation to Great Britain in respect of an old scheme year; or
- (b) any power conferred, or duty imposed, on a manufacturer, the Secretary of State or the First-tier Tribunal by or under the legislation amended or revoked by the amendments and revocations which may or must be exercised—
- (i) after the end of an old scheme year in relation to Great Britain; and
- (ii) in relation to the specific emissions obligation in relation to Great Britain in respect of an old scheme year.
- (3) Any power mentioned in sub-paragraph (b) of paragraph (2) may, and any duty mentioned in that sub-paragraph must, be exercised on and after the date on which this Order comes into force as if the amendments and revocations had not been effected.
- (4) For the purposes of paragraphs (2) and (3), when calculating the specific emissions target in Annex I of Regulation (EU) 2019/631—
- (a) in points 1 and 2 of Part A, any reference to “new passenger car” must be read as if it means “motor vehicle of category M1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which is registered in the United Kingdom or European Union for the first time and which has not previously been registered outside the United Kingdom or European Union”;
- (b) in point 3 of Part A, any reference to “average specific emissions of CO₂” must be read as if it means “in relation to a manufacturer, the average specific CO₂ emissions of motor vehicles of category M1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which are registered in the United Kingdom or European Union for the first time and which have not previously been registered outside the United Kingdom or European Union, of which it is the manufacturer”;
- (c) in points 1 and 2 of Part B, any reference to “new light commercial vehicle” must be read as if it means “motor vehicle of category N1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007, as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, as that Regulation has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which is registered in the United Kingdom or European Union for the first time and which has not previously been registered outside the United Kingdom or European Union”; and
- (d) in point 3 of Part B, any reference to “average specific emissions of CO₂” must be read as if it means “in relation to a manufacturer, the average specific CO₂ emissions of motor vehicles of category N1 as defined in Article 4 of Regulation (EU) 2018/858, as it has effect in domestic law (in respect of vehicles with GB type-approval), or, where relevant, Article 4 of Regulation (EU) 2018/858 as it has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), with a reference mass not exceeding 2 610 kg, and vehicles of category N1 to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007, as it has effect in domestic law (in respect of vehicles with GB type-approval) or, where relevant, as that Regulation has effect in EU law as amended from time to time and by virtue of the Northern Ireland Protocol (in respect of vehicles with UK (NI) type-approval or EU type-approval), which are registered in the United Kingdom or European Union for the first time and which have not previously been registered outside the United Kingdom or European Union, of which it is the manufacturer”.
- (5) When determining the specific emissions target in Annex I, the Secretary of State must calculate a UK target and an EU target.
- (6) A manufacturer’s specific emissions target is the higher of the UK target or the EU target, unless the manufacturer notifies the Secretary of State otherwise within 30 days of receipt by the manufacturer of their specific emissions target.
Part 9 — Miscellaneous
Crown application
117
This Order applies to the Crown.
Review
118
- (1) The Secretary of State must from time to time—
- (a) carry out a review of the regulatory provision contained in this Order; and
- (b) publish a report setting out the conclusions of the review.
- (2) Section 30(4) of the Small Business, Enterprise and Employment Act 2015[^f00027] requires that a report published under this article must, in particular—
- (a) set out the objectives intended to be achieved by the regulatory provision contained in this Order;
- (b) assess the extent to which those objectives are achieved;
- (c) assess whether those objectives remain appropriate; and
- (d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.
- (3) The first report must be published before the end of the period of five years beginning with the date on which this Order comes into force.
- (4) Subsequent reports must be published at intervals not exceeding five years.
- (5) In this article, “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act).
Schedule 1 — Baseline for the CCTS and VCTS
Part 1 — Baseline for the CCTS
Interpretation and general
1
In this Part—
- (a) the period beginning with 1st January 2021 and ending with 31st December 2021 is referred to as “2021”;
- (b) the period beginning with 1st January 2022 and ending with 31st December 2022 is referred to as “2022”;
- (c) the period beginning with 1st January 2023 and ending with 31st December 2023 is referred to as “2023”;
- (d) “adjusted specific emissions of CO₂”, in relation to a car, means the specific emissions of CO₂ of the car, reduced where applicable by the number of grams of CO₂ per kilometre specified in the certificate of conformity of that car as being due to any eco-innovation;
- (e) “exempt manufacturer” means a manufacturer to which Article 4, points (b) and (c) of Article 7(4), Article 8 and points (a) and (c) of Article 9(1) of Regulation (EU) 2019/631 did not apply by virtue of Article 2(4) of that Regulation;
- (f) “excess emissions premium” means a requirement to pay a specified amount where a manufacturer’s average specific emissions exceed its specific emissions target under Article 8 of Regulation (EU) 2019/631;
- (g) “non-ZE car” means a car which has specific emissions of CO₂ greater than zero grams per kilometre;
- (h) “pool” means a group of manufacturers which formed a pool for the purposes of meeting their obligations under Article 4 of Regulation (EU) 2019/631;
- (i) “pool manager” means a manufacturer nominated as the manager of a pool in accordance with Article 6(2)(b) of Regulation (EU) 2019/631;
- (j) “specific emissions target” has the same meaning as it had in Regulation (EU) 2019/631, as it stood immediately before the coming into force of this Order;
- (k) “2021 individual NZE average emissions”, in relation to a manufacturer, means the average of the adjusted specific emissions of CO₂ of the non-ZE cars of which that manufacturer is the manufacturer and which were registered during 2021;
- (l) “2021 individual specific emissions target” means the specific emissions target for a manufacturer for 2021;
- (m) “2021 pool specific emissions target” means the specific emissions target to which the manufacturers in a pool were collectively subject, for the purposes of meeting their obligations under Article 4 of Regulation (EU) 2019/631 for 2021, in accordance with Article 6 of that Regulation;
- (n) “2021 individual performance”, in relation to a manufacturer, means the average of the specific emissions of CO₂, as specified in the information published by the Secretary of State pursuant to Article 9(1)(b) of Regulation (EU) 2019/631[^f00028], of the non-ZE cars of which the manufacturer was the manufacturer and which were registered during 2021;
- (o) “2021 pool performance”, in relation to a pool, means the average of the specific emissions of CO₂, as specified in the information published by the Secretary of State pursuant to Article 9(1)(b) of Regulation (EU) 2019/631, of the non-ZE cars of which a member of the pool was the manufacturer and which were registered during 2021;
- (p) “2021 individual excess”, in relation to a manufacturer, is calculated by applying the following formula—
$$A÷B-1$where—“A” is the manufacturer’s 2021 individual performance; and“B” is the manufacturer’s 2021 individual specific emissions target;$
- (q) “2021 pool excess”, in relation to a pool, is calculated by applying the following formula—
$$C÷D-1$where—“C” is the pool’s 2021 pool performance; and“D” is the pool’s 2021 pool specific emissions target$
2
Paragraphs 5 to 19 apply for the purposes of calculating the baseline for a CCTS participant consisting of a manufacturer which is not a member of a pool CCTS participant.
3
Paragraph 20 applies for the purposes of calculating the baseline for a CCTS participant which is a pool CCTS participant.
4
A baseline which is calculated in accordance with this Part, if not a whole number, is calculated to three decimal places only.
Existing manufacturer which met 2021 target
5
Paragraph 6 applies for the purpose of calculating the baseline for a CCTS participant—
- (a) which had a 2021 individual specific emissions target; and
- (b) in relation to which no excess emissions premium was imposed for 2021 on—
- (i) the manufacturer; or
- (ii) the pool manager for a pool of which the manufacturer was a member for 2021.
6
Where this paragraph applies, the CCTS participant’s baseline is the higher of—
- (a) the manufacturer’s 2021 individual NZE average emissions; or
- (b) the manufacturer’s 2021 individual specific emissions target.
Exempt manufacturer for 2021
7
The baseline for a CCTS participant which was an exempt manufacturer for 2021 is the manufacturer’s 2021 individual NZE average emissions.
Existing manufacturer which did not meet 2021 target
8
Paragraph 9 applies for the purpose of calculating the baseline for a CCTS participant—
- (a) which had a 2021 individual specific emissions target;
- (b) which was not a member of a pool for 2021; and
- (c) on which an excess emissions premium was imposed for 2021.
9
Where this paragraph applies, the CCTS participant’s baseline is the number resulting from the application of the following formula—
$$E-E×F$where—“E” is the manufacturer’s 2021 individual NZE average emissions; and“F” is the manufacturer’s 2021 individual excess.$
Existing manufacturer in non-compliant pool met individual 2021 target
10
Paragraph 11 applies for the purpose of calculating the baseline for a CCTS participant which—
- (a) had a 2021 individual specific emissions target;
- (b) was a member of a pool for 2021 and—
- (i) an excess emissions premium was imposed on the pool manager for that pool for 2021; but
- (ii) the manufacturer met its individual 2021 specific emissions target.
11
Where this paragraph applies, the CCTS participant’s baseline is the higher of—
- (a) the manufacturer’s 2021 individual NZE average emissions; or
- (b) the manufacturer’s 2021 individual specific emissions target.
Existing manufacturer in non-compliant pool did not meet individual 2021 target
12
Paragraph 13 applies for the purpose of calculating the baseline for a CCTS participant where—
- (a) the manufacturer had a 2021 individual specific emissions target;
- (b) the manufacturer was a member of a pool for 2021;
- (c) an excess emissions premium was imposed on the pool manager for that pool for 2021; and
- (d) the manufacturer did not meet its 2021 individual specific emissions target.
13
Where this paragraph applies, the CCTS participant’s baseline is the number resulting from the application of the following formula—
$$E-E×H$where—“E” is the manufacturer’s 2021 individual NZE average emissions; and“H” is the 2021 pool excess for the pool of which the manufacturer was a member.$
New manufacturer in 2022
14
Paragraph 15 applies for the purpose of calculating the baseline for a CCTS participant which—
- (a) did not have a 2021 individual specific emissions target;
- (b) was not an exempt manufacturer for 2021; and
- (c) is the manufacturer of a non-ZE car which was registered during 2022.
15
Where this paragraph applies, the CCTS participant’s baseline is the average of the adjusted specific emissions of CO₂ of the non-ZE cars of which that CCTS participant is the manufacturer and which were registered during 2022.
New manufacturer in 2023
16
Paragraph 17 applies for the purpose of calculating the baseline for a CCTS participant which—
- (a) did not have a 2021 individual specific emissions target;
- (b) was not an exempt manufacturer for 2021;
- (c) is not the manufacturer of a non-ZE car which was registered during 2022; and
- (d) is the manufacturer of a non-ZE car which was registered during 2023.
17
Where this paragraph applies, the CCTS participant’s baseline is the average of the adjusted specific emissions of CO₂ of the non-ZE cars of which that CCTS participant is the manufacturer and which were registered during 2023.
New manufacturer from 2024
18
Paragraph 19 applies for the purpose of calculating the baseline for a CCTS participant which—
- (a) did not have a 2021 individual specific emissions target;
- (b) was not an exempt manufacturer for 2021;
- (c) is not the manufacturer of a non-ZE car which was registered during 2022 or 2023; and
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