The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022
Key amendments
This Order makes the following amendments to the UK Emissions Trading Scheme (UK ETS), to:
- enable changes to free allocation for installations to be based on activity levels that do not include the 2020 COVID year;
- provide a window for Hospitals and Small Emitters (HSEs) to re-enter the main scheme;
- update Global Warming Potential values to meet international obligations; and
- make several other minor operational amendments.
What is the UK ETS?
The UK ETS requires operators of certain industrial installations and certain aircraft operators to monitor, report on, and surrender “allowances” equivalent to, their greenhouse gas emissions in each scheme year. The UK ETS Phase 1 runs for ten “scheme years” beginning in 2021.
Some operators and aircraft operators receive a number of allowances free of charge.
Allowances are held in accounts in the UK ETS Registry, and there is a cap on the number of allowances that may be created, to limit the total amount of certain greenhouse gases that can be emitted.
You can opt out of the UK Emissions Trading Scheme (UK ETS) if you are an operator that provides services to hospitals or your installation is classed as a small emitter.
Key dates
The Regulations are coming into force on 01 January 2023
Further information
Read the full text of the Regulations here - The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022 (legislation.gov.uk)