The Vehicle Emissions Trading Schemes Order 2023

[^M_F_0468f864-5101-47e4-8f4c-5b75c276b55c]: Words in Sch. 3 para. 12 substituted (1.1.2026) by The Vehicle Emissions Trading Schemes (Amendment) (No. 2) Order 2025 (S.I. 2025/1101), arts. 1(1), 35

CRTS credits: conversion of unused VRTS allowances by a CRTS participant which is also a VRTS participant

23A

• (1) During a trading window, a CRTS participant which is also a VRTS participant may acquire two CRTS credits 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 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;

• (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; and

• (iii) the number of any VRTS credits which were acquired by the participant in accordance with article 55 (conversion of unused VCTS allowances);

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

• (c) the participant did not acquire the unused VRTS allowances in accordance with article 47 (borrowing VRTS allowances).

• (2) A request under paragraph (1)—

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

• (b) may be for the exchange of a part of a VRTS allowance but may not be for the exchange of a part which is smaller than one tenth of a VRTS allowance.

• (3) A CRTS credit acquired in accordance with this article may not be traded under article 25.

CRTS credits: conversion of VRTS credits by a CRTS participant which is also an SPV van manufacturer

23B

• (1) During a trading window, a CRTS participant which is also an SPV van manufacturer may acquire two CRTS credits in exchange for one VRTS credit by making a request to the administrator.

• (2) A request under paragraph (1)—

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

• (b) may be for the exchange of a part of a VRTS credit but may not be for the exchange of a part which is smaller than one tenth of a VRTS credit.

• (3) A CRTS credit acquired in accordance with this article may not be traded under article 25.

Measuring activity in the CRTS

Trading CRTS allowances and credits: CRTS participants

Trading CRTS allowances with VRTS participants

25A

• (1) During a trading window, a CRTS participant may trade any unused CRTS allowances with a VRTS participant if—

• (a) the CRTS participant’s number of units of activity in the CRTS in a scheme year does not exceed the sum of—

• (i) the number of CRTS allowances which were allocated to the CRTS participant in accordance with article 13 for that year;

• (ii) the number of any CRTS allowances which were banked by the CRTS participant in accordance with article 14 and were available for it to use at the beginning of the trading window; and

• (iii) the number of any CRTS credits which were acquired by the CRTS participant in accordance with article 23 (conversion of unused CCTS allowances) and are available for it to use;

• (b) the CRTS participant has more CRTS allowances than it requires in order to comply with article 27 (accounting for activity in the CRTS) for that scheme year (referred to in this article as “unused CRTS allowances”); and

• (c) the CRTS participant did not acquire the unused CRTS allowances in accordance with article 15 (borrowing CRTS allowances).

• (2) Where a CRTS participant trades a CRTS allowance under this article, the CRTS allowance is automatically converted to four tenths of a VRTS credit on disposal.

• (3) The CRTS participant may trade parts of CRTS allowances (in which case the conversion rate in paragraph (2) applies on a proportional basis) but may not trade a part smaller than one tenth of a CRTS allowance.

• (4) Each 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 transferor;

• (b) the name and account number in the registry of the transferee;

• (c) a statement of the fact that the trade was carried out under this article;

• (d) the number of CRTS allowances traded; and

• (e) the price paid for those CRTS allowances.

• (5) Each party to a trade under this article must inform the other party to the trade of their account number in the registry.

• (6) Where—

• (a) the transferor is a pool CRTS participant, article 25(5) applies to a trade under this article as it applies to a trade under that article;

• (b) the transferee is a pool VRTS participant, article 57(5) applies to a trade under this article as it applies to a trade under that article.

• (7) Where a trade is notified in accordance with paragraph (4), the administrator must update the registry and notify the parties to the trade accordingly.

• (8) Unless the administrator is satisfied that notification of a trade has been given in accordance with paragraph (4), the trade is treated as not having taken place.

Trading CRTS credits with CRTS participants: SPV car manufacturers

Trading CRTS credits with VRTS participants: SPV car manufacturers

26A

• (1) An SPV car manufacturer may trade any CRTS credits acquired by it under article 21 or 22 with a VRTS participant in accordance with paragraphs (2) to (7).

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

• (3) Where an SPV car manufacturer trades a CRTS credit with a VRTS participant under this article, the CRTS credit is automatically converted to four tenths of a VRTS credit on disposal.

• (4) An SPV car manufacturer may trade parts of CRTS credits (in which case the conversion rate in paragraph (3) applies on a proportional basis) but may not trade a part smaller than one tenth of a CRTS credit.

• (5) Each 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 transferor;

• (b) the name and account number in the registry of the transferee;

• (c) a statement of the fact that the trade was carried out under this article;

• (d) the number of CRTS credits traded; and

• (e) the price paid for those CRTS credits.

• (6) Each party to a trade under this article must inform the other party to the trade of their account number in the registry.

• (7) Where the transferee is a pool VRTS participant, article 57(5) applies to a trade under this article as it applies to a trade under that article.

• (8) Where a trade is notified in accordance with paragraph (5), the administrator must update the registry and notify the parties to the trade accordingly.

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

Accounting for activity in the CRTS

Payments: CRTS

Banked or borrowed CRTS allowances of former CRTS participants

Expiry of CRTS allowances and CRTS credits

VRTS credits: conversion of unused CRTS allowances by a VRTS participant which is also a CRTS participant

55A

• (1) During a trading window, a VRTS participant which is also a CRTS participant may acquire one VRTS credit in exchange for two and a half unused CRTS allowances by making a request to the administrator if—

• (a) the participant’s number of units of activity in the CRTS in a scheme year does not exceed the sum of—

• (i) the number of CRTS allowances which were allocated to the participant in accordance with article 13 for that year;

• (ii) the number of any CRTS allowances which were banked by the participant in accordance with article 14 and were available for it to use at the beginning of the trading window; and

• (iii) the number of any CRTS credits which were acquired by the participant in accordance with article 23 (conversion of unused CCTS allowances into CRTS credits) and are available for it to use;

• (b) the participant has more CRTS allowances than it requires in order to comply with article 27 (accounting for activity in the CRTS) for that scheme year (referred to in this article as “unused CRTS allowances”); and

• (c) the participant did not acquire the unused CRTS allowances in accordance with article 15 (borrowing CRTS allowances).

• (2) A request under paragraph (1)—

• (a) must be made during the trading window following the scheme year for which the participant intends to surrender the VRTS credits to which the request relates;

• (b) may be for the exchange of a part of a CRTS allowance but may not be for the exchange of a part which is smaller than one tenth of a CRTS allowance.

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

VRTS credits: conversion of CRTS credits by a VRTS participant which is also an SPV car manufacturer

55B

• (1) During a trading window, a VRTS participant which is also an SPV car manufacturer may acquire one VRTS credit in exchange for two and a half CRTS credits by making a request to the administrator.

• (2) A request under paragraph (1)—

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

• (b) may be for the exchange of a part of a CRTS credit but may not be for the exchange of a part which is smaller than one tenth of a CRTS credit.

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

Measuring activity in the VRTS

Trading VRTS allowances and credits: VRTS participants

Trading VRTS allowances with CRTS participants

57A

• (1) During a trading window, a VRTS participant may trade any unused VRTS allowances with a CRTS participant if—

• (a) the VRTS participant’s number of units of activity in the VRTS in a scheme year does not exceed the sum of—

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

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

• (iii) the number of any VRTS credits which were acquired by the VRTS participant in accordance with article 55 (conversion of unused VCTS allowances into VRTS credits) and are available for it to use;

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

• (c) the VRTS participant did not acquire the unused VRTS allowances in accordance with article 47 (borrowing VRTS allowances).

• (2) Where a VRTS participant trades an unused VRTS allowance under this article, the VRTS allowance is automatically converted to two CRTS credits on disposal.

• (3) A VRTS participant may trade parts of VRTS allowances (in which case the conversion rate in paragraph (2) applies on a proportional basis) but may not trade a part smaller than one tenth of a VRTS allowance.

• (4) Each party to a trade under this article must, before the end of trading window, notify the administrator of the trade, and each notification must include—

• (a) the name and account number in the registry of the transferor;

• (b) the name and account number in the registry of the transferee;

• (c) a statement of the fact that the trade was carried out under this article;

• (d) the number of VRTS allowances traded; and

• (e) the price paid for those VRTS allowances.

• (5) Each party to a trade under this article must inform the other party to the trade of their account number in the registry.

• (6) Where—

• (a) the transferor is a pool VRTS participant, article 57(5) applies to a trade under this article as it applies to a trade under that article;

• (b) the transferee is a pool CRTS participant, article 25(5) applies to a trade under this article as it applies to a trade under that article.

• (7) Where a trade is notified in accordance with paragraph (4), the administrator must update the registry and notify the parties to the trade accordingly.

• (8) Unless the administrator is satisfied that notification of a trade has been given in accordance with paragraph (4), the trade is treated as not having taken place.

Trading VRTS credits with VRTS participants: SPV van manufacturers

Trading VRTS credits with CRTS participants: SPV van manufacturers

58A

• (1) An SPV van manufacturer may trade VRTS credits acquired by it under article 53 or 54 with a CRTS participant in accordance with paragraphs (2) to (7).

• (2) An SPV van 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) Where an SPV van manufacturer trades a VRTS credit with a CRTS participant under this article, the VRTS credit is automatically converted to two CRTS credits on disposal.

• (4) An SPV van manufacturer may trade parts of VRTS credits (in which case the conversion rate in paragraph (3) applies on a proportional basis) but may not trade a part smaller than one tenth of a VRTS credit.

• (5) Each 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 transferor;

• (b) the name and account number in the registry of the transferee;

• (c) a statement of the fact that the trade was carried out under this article;

• (d) the number of VRTS credits traded; and

• (e) the price paid for those VRTS credits.

• (6) Each party to a trade under this article must inform the other party to the trade of their account number in the registry.

• (7) Where the transferee is a pool CRTS participant, article 25(5) applies to a trade under this article as it applies to a trade under that article.

• (8) Where a trade is notified in accordance with paragraph (5), the administrator must update the registry and notify the parties to the trade accordingly.

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

Accounting for activity in the VRTS

Payments: VRTS

Banked or borrowed VRTS allowances of former VRTS participants

Expiry of VRTS allowances and VRTS credits

Schedule 3A — Alternative specific emissions of CO₂: OVC hybrid electric vehicles

Part 1 — General

1

In this Schedule—

• “charge-depleting Type 1 test” means the test described in point 3.2.4 of Annex B8 to UN Regulation No 154;

• “charge-sustaining Type 1 test” means the test described in point 3.2.5 of Annex B8 to UN Regulation No 154;

• “class 3a vehicle” has the same meaning as in point 2.3.1.1 of Annex B1 to UN Regulation No 154;

• “class 3b vehicle” has the same meaning as in point 2.3.1.2 of Annex B1 to UN Regulation No 154;

• “Condition A” means the condition set out in paragraph 5;

• “Condition B” means the condition set out in paragraph 6;

• “Condition C” means the condition set out in paragraph 7;

• “cycle energy demand” has the meaning given in point 3.5.6 of UN Regulation No 154;

• “emissions type-approval certificate” means a certificate of type-approval which—in relation to a vehicle which is registered in Great Britain—is issued by the approval authority; andis sufficient to show that a vehicle complies with the requirements of Regulation (EU) 2017/1151, as that Regulation has effect in domestic law, or UN Regulation No 154;in relation to a vehicle which is registered in Northern Ireland—is issued by the approval authority or an EU approval authority; andis sufficient to show that a vehicle complies with the requirements of Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;

• “equivalent vehicle”, in relation to a subject vehicle, means a vehicle which—belongs to the same vehicle type with regard to emissions as the subject vehicle; andwas type-approved in accordance with the Euro 6d-ISC-FCM emission standard or the Euro 6e emission standard;

• “EU approval authority” has the same meaning as in article 30(1) of Regulation (EU) 2018/858, as that Regulation has effect in domestic law;

• “EU Regulation-tested vehicle” means a vehicle in respect of which the level of emissions of CO₂ were tested for the purposes of type-approval in accordance with Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;

• “Euro 6d-ISC-FCM emission standard” means the Euro 6d-ISC-FCM emission standard referred to in—in relation to an EU Regulation-tested vehicle, Table 1 of Appendix 6 of Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;in relation to a GB Regulation-tested vehicle, Table 1 of Appendix 6 of Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in domestic law;

• “Euro 6e emission standard” means the Euro 6e emission standard referred to in—in relation to an EU Regulation-tested vehicle, Table 1 of Appendix 6 of Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;in relation to a UN Regulation-tested vehicle, Table A3/1 of Annex 3 to UN/ECE Regulation No 83;

• “Euro 6e-bis emission standard” means the Euro 6e-bis emission standard referred to in—in relation to an EU Regulation-tested vehicle, Table 1 of Appendix 6 of Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;in relation to a UN Regulation-tested vehicle, Table A3/1 of Annex 3 to UN/ECE Regulation No 83;

• “Euro 6e-bis-FCM emission standard” means the Euro 6e-bis-FCM emission standard referred to in—in relation to an EU Regulation-tested vehicle, Table 1 of Appendix 6 of Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;in relation to a UN Regulation-tested vehicle, Table A3/1 of Annex 3 to UN/ECE Regulation No 83;

• “GB Regulation-tested vehicle” means a vehicle in respect of which the level of emissions of CO₂ were tested for the purposes of type-approval in accordance with Regulation (EU) 2017/1151, as that Regulation has effect in domestic law;

• “interpolation family” has the meaning given in point 6.3.2 of UN Regulation No 154;

• “phase” is to be construed in accordance with points 3.3.1 and 3.3.2 of Annex B1 to UN Regulation No 154 (class 3a vehicles and class 3b vehicles respectively);

• “Regulation (EU) 2017/1151, as that Regulation has effect in domestic law” means Commission Regulation (EU) 2017/1151 of 1 June 2017 supplementing Regulation (EC) No 715/2007 of the European Parliament and of the Council on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information, amending Directive 2007/46/EC of the European Parliament and of the Council, Commission Regulation (EC) No 692/2008 and Commission Regulation (EU) No 1230/2012 and repealing Commission Regulation (EC) No 692/2008, as that Regulation has effect in domestic law;

• “Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework” means Commission Regulation (EU) 2017/1151 of 1 June 2017 supplementing Regulation (EC) No 715/2007 of the European Parliament and of the Council on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information, amending Directive 2007/46/EC of the European Parliament and of the Council, Commission Regulation (EC) No 692/2008 and Commission Regulation (EU) No 1230/2012 and repealing Commission Regulation (EC) No 692/2008, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;

• “Regulation (EU) 2018/858, as that Regulation has effect in domestic law” means Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC) No 595/2009 and repealing Directive 2007/46/EC, as that Regulation has effect in domestic law;

• “subject vehicle” means the vehicle that is the subject of an application under this Schedule;

• “technical service” has the meaning given in—in relation to a vehicle which is registered in Great Britain, article 3(38) of Regulation (EU) 2018/858, as that Regulation has effect in domestic law;in relation to a vehicle which is registered in Northern Ireland, article 3(38) of Regulation (EU) 2018/858 of the European Parliament and of the Council of 30 May 2018 on the approval and market surveillance of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles, amending Regulations (EC) No 715/2007 and (EC) No 595/2009 and repealing Directive 2007/46/EC, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;

• “test report”—in relation to a vehicle which is registered in Great Britain, means a report which—is issued by a technical service of the approval authority or, where article 30(2A) of Regulation (EU) 2018/858, as that Regulation has effect in domestic law, applies, by a technical service of an EU approval authority; andcontains the minimum data for the Type 1 test in accordance with Part 1 of Appendix 8a to Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in domestic law, or Part 1 of Appendix 1 to Annex A1 to UN Regulation No 154;in relation to a vehicle which is registered in Northern Ireland, means a report which is issued by a technical service of the approval authority or of an EU approval authority and contains the minimum data for the Type 1 test in accordance with Part 1 of Appendix 8a to Annex 1 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;

• “transition cycle” has the meaning given in point 3.2.4.4 of Annex B8 to UN Regulation No 154;

• “Type 1 test” means—in relation to an EU Regulation-tested vehicle, the test referred to in point 2.1 of Annex 21 to Regulation (EU) 2017/1151, as that Regulation has effect in EU law from time to time and by virtue of the Windsor Framework;in relation to a GB Regulation-tested vehicle, the test described in point 1.1. of Sub-Annex 6 to Annex 21 to Regulation (EU) 2017/1151, as that Regulation has effect in domestic law;in relation to a UN Regulation-tested vehicle, the test described in point 1.1 of Annex B6 to UN Regulation No 154;

• “UN/ECE Regulation No 83” means Regulation No 83 of the Economic Commission for Europe of the United Nations (UN/ECE) – Uniform provisions concerning the approval of vehicles with regard to the emission of pollutants according to engine fuel requirements;

• “UN Regulation-tested vehicle” means a vehicle in respect of which the level of emissions of CO₂ were tested for the purposes of type-approval in accordance with UN Regulation No 154;

• “Vehicle H” means test vehicle H of the interpolation family to which the subject vehicle belongs, as described in point 4.2.1.1.2 of Annex B4 to UN Regulation No 154;

• “Vehicle L” means test vehicle L of the interpolation family to which the subject vehicle belongs, as described in point 4.2.1.1.2 of Annex B4 to UN Regulation No 154;

• “Vehicle M” means test vehicle M of the interpolation family to which the subject vehicle belongs, as described in point 2.3.2.4 of Annex B6 to UN Regulation No 154;

• “vehicle type with regard to emissions” has the meaning given to “vehicle type with regard to emissions and vehicle repair and maintenance information” in article 2(1) of Regulation (EU) 2017/1151, as that Regulation has effect in domestic law.

Part 2 — Applications for alternative specific CO2 emissions

2

A CCTS participant may apply for the specific emissions of CO₂ of a car of which it is the manufacturer to be determined in accordance with Part 6 of this Schedule if—

• (a) the car is classed as an OVC hybrid electric vehicle in the certificate of conformity or individual vehicle approval certificate; and

• (b) the car was type-approved in accordance with the Euro 6e-bis emission standard or the Euro 6e-bis-FCM emission standard.

3

A VCTS participant may apply for the specific emissions of CO₂ of a van of which it is the manufacturer to be determined in accordance with Part 6 of this Schedule if—

• (a) the van is classed as an OVC hybrid electric vehicle in the certificate of conformity or individual vehicle approval certificate; and

• (b) the van was type-approved in accordance with the Euro 6e-bis emission standard or the Euro 6e-bis-FCM emission standard.

4

An application under this Schedule is valid if it—

• (a) is made to the administrator;

• (b) includes the vehicle identification number of the subject vehicle;

• (c) subject to paragraph 13, is made on or before 30th April of the year following the scheme year in which the subject vehicle was registered;

• (d) meets—

• (i) where there is an equivalent vehicle in relation to the subject vehicle, Condition A, Condition B or Condition C;

• (ii) in any other case, Condition B or Condition C;

• (e) is signed by or on behalf of the applicant to confirm that the information in or accompanying the application is true and accurate; and

• (f) is submitted in hard copy or by electronic means.

Part 3 — Conditions A, B and C

5

Condition A is that the application—

• (a) is accompanied by—

• (i) a copy of the certificate of conformity for the equivalent vehicle; and

• (ii) a copy of the test report, or a copy of the emissions type-approval certificate, for the equivalent vehicle; and

• (b) includes the information specified in paragraph 8 for the subject vehicle.

6

Condition B is that the application—

• (a) is accompanied by—

• (i) a copy of the certificate of conformity for the subject vehicle; and

• (ii) a copy of the test report, or a copy of the emissions type-approval certificate, for the subject vehicle; and

• (b) includes—

• (i) the information specified in paragraph 8 for the subject vehicle; and

• (ii) the information specified in paragraph 9 for each of Vehicle H, Vehicle L and Vehicle M.

7

Condition C is that the application—

• (a) is accompanied by—

• (i) a copy of the certificate of conformity for the subject vehicle; and

• (ii) a copy of the test report, or a copy of the emissions type-approval certificate, for the subject vehicle; and

• (b) includes the information specified in paragraph 9 for Vehicle H.

Part 4 — Specified information

8

The information specified in this paragraph is—

• (a) the following information specified on the certificate of conformity—

• (i) the test mass;

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

• (b) from the Type 1 test, the cycle energy demand of the vehicle, measured in watt-seconds.

9

The information specified in this paragraph is—

• (a) whether the vehicle is classified as a class 3a or a class 3b vehicle;

• (b) the following information from the Type 1 test—

• (i) the CO₂ mass emission over the total cycle of the charge-sustaining Type 1 test, calculated in accordance with Table A8/5 in Sub-Annex 8 of Annex 21 to Regulation (EU) 2017/1151 or step 7 in Table A8/5 in Annex B8 to UN Regulation 154 and measured in grams per kilometre;

• (ii) the CO₂ mass emission for each phase of the charge-depleting Type 1 test, calculated in accordance with point 3.2.1 of Sub-Annex 7 of Annex 21 to Regulation (EU) 2017/1151 or point 4.1.2. of Annex B8 to UN Regulation 154 and measured in grams per kilometre;

• (iii) the index number of the transition cycle;

• (iv) the cycle energy demand of the vehicle, measured in watt-seconds;

• (v) the maximum speed of the vehicle, measured in kilometres.

Part 5 — Decision on the application

10

The administrator must, within the decision period—

• (a) if the application is valid, grant it and notify the applicant accordingly; or

• (b) if the application is invalid—

• (i) reject it and notify the applicant accordingly; or

• (ii) if appropriate, proceed under paragraph 12.

11

The notification required by paragraph 10 must be in writing and include—

• (a) where the application is granted, the specific emissions of CO₂ of the subject vehicle (see further Part 6);

• (b) where the application is rejected, the reasons for rejecting it.

12

If an application under this Schedule, other than a further application under paragraph 13, is incomplete or contains an error, the administrator may, within the decision period, notify the applicant of the defect and allow the applicant to correct the defect within the time period specified in the notification.

13

If an application under this Schedule is rejected as invalid, the applicant may submit a further application for the subject vehicle on or before 30th June of the year following the scheme year in which the subject vehicle was registered.

14

In this Part, “decision period”, in relation to an application, means the period of 28 days beginning with the day after—

• (a) the day on which the administrator received the application; or

• (b) if the applicant sought to correct a defect in the application following a notification under paragraph 12, the day on which the applicant sought to do so.

Part 6 — Determination of alternative specific emissions of CO2

15

Where the administrator grants an application under this Schedule in respect of a vehicle, the administrator must determine the specific emissions of CO₂ of the vehicle in accordance with this Part.

16

If the application met Condition A or Condition B, the specific emissions of CO₂ of the vehicle is the value of MCO2-ind,weighted for the vehicle, as referred to in point 4.5.4.3 of Annex B8 to UN Regulation No 154 (and calculated in accordance with the equation in that point).

17

If the application met Condition C, but not Condition B, the specific emissions of CO₂ of the vehicle is the value of MCO2, weighted for Vehicle H, as referred to in point 4.1.3.1 of Annex B8 to UN Regulation No 154 (and calculated in accordance with the equation in that point).

18

For the purposes of calculating the values referred to in paragraphs 16 and 17, the normalised distance is 800 km.

11A

For a vehicle in relation to which an administrator has granted an application under Schedule 3A (alternative specific emissions of CO₂: OVC hybrid electric vehicles), “specific emissions of CO₂” in paragraph 10(e)(a) has the meaning it would have if that application had not been granted.