The Vehicle Emissions Trading Schemes Order 2023

• (a) the applicant is not eligible to be a low-volume CRTS participant or a low-volume VRTS participant because it does not fall within paragraph 5 or 6, as the case may be; or

• (b) the application is incomplete and the applicant does not provide the missing information within the time period specified in a request for the information made in writing by the administrator.

13

If a valid application is made under this Part and the administrator has not notified the applicant of an objection to the application before 1st October of the year following the first scheme year to which the application relates, the application is granted.

14

Where an application is granted in accordance with paragraph 13, the applicant is a low-volume CRTS participant or a low-volume VRTS participant, as the case may be, and subject to paragraph 7, for the first scheme year to which the application relates and the two subsequent scheme years.

15

Where an application is rejected in accordance with paragraph 12(b), the applicant may re-submit a valid application on or before 30th June of the year following the first scheme year to which the application relates.

16

An applicant which ceases to be a low-volume CRTS participant or a low-volume VRTS participant following expiry of the three scheme years mentioned in paragraph 14 may re-apply to be a low-volume CRTS participant or a low-volume VRTS participant by making a further application in accordance with this Part.

17

An application granted under this Part may be revoked by the administrator if the CRTS participant or VRTS participant is no longer eligible to be a low-volume CRTS participant or a low volume VRTS participant.

18

A revocation under paragraph 17 must be notified by the administrator to the CRTS participant or VRTS participant in writing and takes effect from the start of the scheme year which follows the scheme year in which the revocation is notified.

Schedule 5 — Application by two or more manufacturers to be a pool participant in the Trading Schemes

1

Two or more manufacturers may together apply to the administrator to be a pool participant in the Trading Schemes in accordance with this Schedule.

2

An application under this Schedule may relate to a single scheme year only.

3

An application under this Schedule must be made on or before 30th April of the year following the scheme year for which the manufacturers wish to be a pool participant.

4

An application under this Schedule may only be made by manufacturers which are connected at the end of the scheme year to which the application relates.

5

An application under this Schedule must identify—

• (a) the manufacturers which are to be a pool participant;

• (b) the Trading Scheme or Schemes for which the manufacturers wish to be a pool participant; and

• (c) the manufacturer which will be—

• (i) the contact point for the pool participant; and

• (ii) responsible for receiving notice of any civil penalty under Part 6 on behalf of the pool participant.

6

For the purposes of paragraph 5(b)—

• (a) if an application under this Schedule is made in relation to the CCTS, it must also be made in relation to the CRTS, and vice versa; and

• (b) if an application under this Schedule is made in relation to the VCTS, it must also be made in relation to the VRTS, and vice versa.

7

An application under this Schedule must be accompanied by evidence demonstrating that—

• (a) the manufacturers are connected, as specified in paragraph 4; and

• (b) the manufacturer identified to the administrator in accordance with paragraph 5(c) is capable of fulfilling the roles identified in that paragraph.

8

The administrator may only reject an application under this Schedule if it is not made in accordance with this Schedule.

9

Where the administrator grants an application made in accordance with this Schedule, the group of manufacturers is a pool participant for the Trading Scheme, and for the scheme year, to which the application relates.

Schedule 6 — Percentage of total car or van registrations for the purpose of calculating CRTS allowances and VRTS allowances

Part 1 — Percentage of total car registrations for the purpose of calculating CRTS allowances

Scheme year	Percentage of total car registrations for the purpose of calculating CRTS allowances
2024	78%
2025	72%
2026	67%
2027	62%
2028	48%
2029	34%
2030	20%

Part 2 — Percentage of total van registrations for the purpose of calculating VRTS allowances

Scheme year	Percentage of total van registrations for the purpose of calculating VRTS allowances
2024	90%
2025	84%
2026	76%
2027	66%
2028	54%
2029	42%
2030	30%

Schedule 7 — Information provisions

Part 1 — Information relating to cars and ZE SPVs of category M1

1

The information referred to in article 73(1)(a) and article 74(3)(a) is—

• (a) the manufacturer;

• (b) the type-approval number and, where applicable, extension;

• (c) the type, variant and version (where applicable);

• (d) the make and commercial name;

• (e) the category of vehicle type-approved;

• (f) the mass in running order;

• (g) the specific emissions of CO₂;

• (h) the footprint: the wheel base, the track width of the steered axle and the track width of the other axle;

• (i) the fuel type and fuel mode;

• (j) the engine capacity;

• (k) the electric energy consumption;

• (l) the code for any eco-innovation and the CO₂ emissions reduction due to that eco-innovation;

• (m) the maximum net power;

• (n) the vehicle identification number;

• (o) the test mass;

• (p) the category of vehicle registered;

• (q) the vehicle family identification number;

• (r) the electric range, where applicable;

• (s) the date of first registration;

• (t) the road-load co-efficients: f0, f1 and f2;

• (u) the frontal area;

• (v) the tyre rolling resistance class.

2

The information mentioned in sub-paragraphs (t), (u) and (v) of paragraph 1 is only required to be provided to the administrator if the administrator makes a request in writing for the information to be provided by a CRTS participant or CCTS participant.

3

Paragraph 4 applies in relation to a car which is fuelled by both petrol and liquified petroleum gas, or by both petrol and compressed natural gas, and in relation to which the certificate of conformity or the individual vehicle approval certificate includes specific emissions of CO₂ for both types of fuel.

4

For a car to which this paragraph applies, the administrator must record the specific emissions of CO₂ in relation to the liquified petroleum gas or the compressed natural gas, as the case may be.

5

For a car which is fuelled by both petrol and ethanol (E85), the administrator must record the specific emissions of CO₂ in relation to the petrol.

Part 2 — Information relating to vans, ZE SPVs of category N1 and certain ZE SPVs of category N2

6

The information referred to in article 73(1)(b) and article 74(3)(b) is—

• (a) the manufacturer;

• (b) the type-approval number and, where applicable, extension;

• (c) the type, variant and version (where applicable);

• (d) the make and commercial name;

• (e) the category of vehicle type-approved;

• (f) the category of vehicle registered;

• (g) the specific emissions of CO₂;

• (h) the mass in running order;

• (i) the technically permissible maximum laden mass;

• (j) the footprint: the wheel base, the track width of the steered axle and the track width of the other axle;

• (k) the fuel type and fuel mode;

• (l) the engine capacity;

• (m) the electric energy consumption;

• (n) the code for any eco-innovation and the CO₂ emissions reduction due to that eco-innovation;

• (o) the vehicle identification number;

• (p) the test mass;

• (q) the vehicle family identification number;

• (r) the electric range, where applicable;

• (s) the date of first registration;

• (t) the maximum net power;

• (u) the road-load co-efficients: f0, f1 and f2;

• (v) the frontal area;

• (w) the tyre rolling resistance class.

7

The information mentioned in sub-paragraphs (u), (v) and (w) of paragraph 6 is only required to be provided to the administrator if the administrator makes a request in writing for the information to be provided by a VRTS participant or VCTS participant.

8

Paragraph 9 applies in relation to a van which is fuelled by both petrol and liquified petroleum gas, or by both petrol and compressed natural gas, and in relation to which the certificate of conformity or the individual vehicle approval certificate includes specific emissions of CO₂ for both types of fuel.

9

For a van to which this paragraph applies, the administrator must record the specific emissions of CO₂ in relation to the liquified petroleum gas or the compressed natural gas, as the case may be.

10

For a van which is fuelled by both petrol and ethanol (E85), the administrator must record the specific emissions of CO₂ in relation to the petrol.

Part 3 — Information relating to the base vehicle of completed vans

11

The information referred to in article 73(1)(c) is set out in paragraphs 12 and 13.

12

Where the completed van is based on an incomplete base vehicle, the information in relation to the base vehicle is—

• (a) the vehicle identification number;

• (b) the vehicle family identification number, determined in accordance with point 5.0 of Annex 21 to Regulation (EU) 2017/1151;

• (c) the monitoring CO₂ emissions, calculated in accordance with paragraphs 9 to 19 of Schedule 3;

• (d) the frontal area, calculated in accordance with paragraphs 16 to 19 of Schedule 3;

• (e) the rolling resistance of the individual vehicle, as identified for the purposes of point 3.2.3.2.2.2 or point 3.2.4.1.1.2 of Sub-Annex 7 to Annex 21 to Regulation (EU) 2017/1151;

• (f) the monitoring mass, being the mass in running order multiplied by 1.387;

• (g) the mass in running order;

• (h) the mass representative of the vehicle load, calculated in accordance with paragraph 11(c) of Schedule 3.

13

Where the completed van is based on a complete base vehicle, the information in relation to the base vehicle is—

• (a) the vehicle identification number;

• (b) the vehicle family identification number, determined in accordance with point 5.0 of Annex 21 to Regulation (EU) 2017/1151;

• (c) the specific emissions of CO₂ of the base vehicle; and

• (d) the mass in running order.

Signed

Ceri King — Deputy Clerk of the Privy Council

Explanatory note

(This note is not part of the Order)

Explanatory Note

This Order is made under sections 44, 46(3), 54 and 90(3) of, and Parts 1 and 3 of Schedule 2 and paragraph 9 of Schedule 3 to, the Climate Change Act 2008 (c. 27). It establishes four new trading schemes which limit, or encourage the limitation of, CO₂ emissions resulting from the registration of new cars and light commercial vehicles (vans). Two of the schemes apply to cars: the Non-Zero-Emission Car Registration Trading Scheme (“CRTS”) and the Non-Zero-Emission Car CO₂ Trading Scheme (“CCTS”), and two apply to vans: the Non-Zero-Emission Van Registration Trading Scheme (“VRTS”) and the Non-Zero-Emission Van CO₂ Trading Scheme (“VCTS”). They are collectively referred to as “the Trading Schemes”, and apply in Great Britain.

Part 1 contains definitions that are used throughout the Order, including key concepts such as “car” and “van”, the “trading period” (the date the Order comes into force to 31st December 2030), “scheme year”, “trading window” (the period from 1st November to 31st December following a scheme year), “specific emissions of CO₂”, “registration”, “NZE” (non-zero-emission) and “ZE” (zero-emission). Part 2 establishes the Trading Schemes (article 4) and makes some general provision in relation to the schemes and their administration.

Chapter 1 of Part 3 contains provisions which are specific to the CRTS. This trading scheme applies to the activity of registering NZE cars, measured by reference to the number of such cars registered (article 10). The manufacturer of a car which is registered during a scheme year, or a group of such manufacturers, is a CRTS participant (article 11). CRTS allowances are allocated by the administrator according to the proportion of a participant’s new car registrations which may be NZE cars (article 13 and Part 1 of Schedule 6). Participants may acquire credits in relation to activities that represent a reduction in CO₂ emissions, subject to limits (articles 18 to 20 and 23). Certain credits may also be acquired by non-participants which manufacture special purpose vehicles (“SPVs”) (articles 21 and 22). CRTS participants may trade CRTS allowances and credits with other CRTS participants during the trading window, and may acquire credits from SPV manufacturers, following which they must account for their activity during a scheme year by surrendering CRTS allowances or credits (article 27). Failure to do so results in an obligation to make a payment of £15,000 for each unit of unaccounted for activity (article 28).

Chapter 2 of Part 3 contains provisions which are specific to the CCTS. This trading scheme applies to the activity of registering NZE cars, measured by reference to each gram of CO₂ emitted by such cars (article 31). The manufacturer of 1,000 or more NZE cars which are registered during a scheme year, or a group of such manufacturers, is a CCTS participant (article 32). CCTS allowances are allocated by the administrator according to the number of NZE car registrations attributable to the participant, multiplied by that participant’s baseline CO₂ emissions, calculated in accordance with Schedule 1. Activity in the CCTS is measured by reference to a car’s specific emissions of CO₂, reduced by any CO₂ savings from eco-innovations (article 36). Trading CCTS allowances is permitted in the trading window (article 37) and activity in each scheme year must be accounted for by surrendering CCTS allowances (article 38). CCTS participants must make a payment of £86 for each unit of unaccounted for activity (article 39).

Chapter 3 of Part 3 contains provisions which are specific to the VRTS. These provisions replicate the CRTS in relation to vans, with certain differences. These differences relate to matters such as the proportion of a VRTS participant’s new van sales which may be NZE vans (Part 2 of Schedule 6), and the payment amount for a unit of activity which is unaccounted for in the VRTS (usually £18,000, article 60).

Chapter 4 of Part 3 contains provisions which are specific to the VCTS. These provisions replicate the CCTS in relation to vans. Activity in the VCTS is measured in the same way as in the CCTS, although there is provision to assess the specific emissions of CO₂ of vans which are manufactured in two or more stages (Schedule 3).

Part 4 contains provision about information required for the purposes of the Trading Schemes. Part 5 includes powers to enable the administrator to monitor compliance with the Order. Part 6 includes a range of civil penalties that may be imposed in respect of specified breaches of the Order. Part 7 contains provision about appeals from decisions made by the administrator to the First-tier Tribunal. Part 8 deals with the retained EU law governing the CO₂ emission limits of new cars and vans which the Trading Schemes build on and replace for Great Britain, and which remains in place, with consequential amendments, for Northern Ireland.

An impact assessment (in the form of a cost benefit analysis) of the effect that the Trading Schemes will have on the costs of business, the voluntary sector and the public sector is available from the Department for Transport, Great Minster House, 33 Horseferry Road, London SW1P 4DR, and is available alongside the instrument and the Explanatory Memorandum on www.legislation.gov.uk.

Footnotes

Editorial notes