Climate Change Bill [HL]

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Climate Change Bill [HL]

Climate Change Bill [HL]
Schedule 1 — The Committee on Climate Change
52

House of Commons Disqualification Act 1975 (c. 24)
30
In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified), at the appropriate place
insert—
“The Committee on Climate Change.”
5
Northern Ireland Assembly Disqualification Act 1975 (c. 25)
31
In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (bodies of which all members are disqualified), at the appropriate
place insert—
“The Committee on Climate Change.”
10
Race Relations Act 1976 (c. 74)
32
In Part 2 of Schedule 1A to the Race Relations Act 1976 (bodies and other
persons subject to general statutory duty), at the appropriate place insert—
“The Committee on Climate Change.”
Freedom of Information Act 2000 (c. 36)
15
33
In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (other public
bodies and offices which are public authorities), at the appropriate place
insert—
“The Committee on Climate Change.”
Scottish Public Services Ombudsman Act 2002 (asp   11)
20
34    (1)
The Scottish Public Services Ombudsman Act 2002 is amended as follows.
      (2)
In section 7 (matters which may be investigated: restrictions), after
subsection (6B) insert—
“(6C)
The Ombudsman must not investigate action taken by or on behalf
of the Committee on Climate Change in the exercise in or as regards
25
Scotland of any function to the extent that the function is not
exercisable within devolved competence (within the meaning of
section 54 of the Scotland Act 1998).”
      (3)
In Schedule 2 (persons liable to investigation), after paragraph 91A insert—
“91B
The Committee on Climate Change.”
30
Public Services Ombudsman (Wales) Act 2005 (c. 10)
35
In Schedule 3 to the Public Services Ombudsman (Wales) Act 2005 (listed
authorities), after the heading “Environment” insert—
“The Committee on Climate Change.”

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 1 — Schemes limiting activities
53

Schedule 2
Section 44

Trading schemes
Part 1
Schemes limiting activities
Introductory
5
1
This Part of this Schedule deals with trading schemes that operate by
limiting or encouraging the limitation of activities that consist of the
emission of greenhouse gas or that cause or contribute, directly or indirectly,
to such emissions.
Trading periods
10
2
The regulations must specify the period or periods by reference to which the
scheme is to operate (a “trading period”).
Activities
3     (1)
The regulations must identify the activities to which the trading scheme
applies.
15
      (2)
The regulations may identify the activities by reference to any, or any
combination of, criteria and in particular—
(a)
may identify the activities by reference to the locations or locations
at which they are carried on, or
(b)
may be expressed to apply to all activities of a particular kind carried
20
on in the United Kingdom or a part of the United Kingdom.
      (3)
The regulations must specify the units of measurement of the activities for
the purposes of the scheme.
      (4)
The regulations may specify units of measurement by reference to—
(a)
the activities themselves,
25
(b)
anything consumed or used for the purposes of the activities,
(c)
anything produced by the activities, or
(d)
any other consequence of the activities.
      (5)
The regulations may, in particular, make provision—
(a)
for activities to be measured by reference to the amount (in tonnes of
30
carbon dioxide equivalent) of the greenhouse gas emissions for
which those activities are to be regarded as responsible; and
(b)
as to the method by which that amount is to be measured or
calculated.
      (6)
The regulations may make different provision in relation to different
35
descriptions of activity to which the scheme applies.
Participants
4     (1)
The regulations must identify the persons to whom the trading scheme
applies (the “participants”).

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 1 — Schemes limiting activities
54

      (2)
The regulations—
(a)
may identify the participants by reference to any, or any combination
of, criteria, or
(b)
provide for their identification by a specified person or body.
      (3)
The regulations may, in particular, identify or provide for the identification
5
of the participants by reference to their responsibility for activities to which
the trading scheme applies.
      (4)
The regulations may provide for more than one person to be treated as a
single participant.
      (5)
The regulations may provide for persons to cease to be participants in
10
circumstances specified in the regulations.
Allocation of allowances
5     (1)
The regulations may provide for the allocation among the participants of
allowances representing the right to carry on a specified amount of the
activities in a trading period.
15
      (2)
The regulations may set a limit on—
(a)
the total amount of the activities for a trading period, and
(b)
the total amount of the allowances to be allocated for the period.
      (3)
The regulations may specify the method of allocation or provide for it to be
determined in accordance with the regulations.
20
      (4)
The regulations may not provide for allowances to be allocated in return for
consideration.
Use of allowances
6     (1)
The regulations may require each participant to have or acquire enough
allowances to match the participant’s activities in a trading period, subject
25
to any offsetting in accordance with provision made under paragraph 7.
      (2)
The regulations—
(a)
may permit allowances held by a participant at the end of a trading
period in excess of the participant’s activities in the period to be used
to cover the participant’s activities in a later trading period,
30
(b)
may permit allowances allocated to a participant for a trading period
to be used to cover the participant’s activities in an earlier trading
period, and
(c)
may in either case provide for such use of allowances to be subject to
such conditions and limitations as may be specified in or determined
35
in accordance with the regulations.
      (3)
The regulations must contain provision for ensuring that allowances used
by a participant for the purposes of a trading scheme cannot be used by the
participant for any other purpose.
      (4)
The regulations—
40
(a)
may provide for the expiry of allowances after such period as may be
specified in or determined in accordance with the regulations;
(b)
may enable allowances to be cancelled by a person by whom they are
held instead of being used for the purposes of a trading scheme.

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 1 — Schemes limiting activities
55

Credits
7     (1)
The regulations may enable participants to offset the carrying on of the
activities in a trading period by acquiring credits representing—
(a)
a reduction in an amount of greenhouse gas emissions, or
(b)
the removal of an amount of greenhouse gas from the atmosphere.
5
      (2)
Regulations that make provision under this paragraph for a trading period
must set a limit on the total amount of the activities for the period.
      (3)
If the regulations also provide for the allocation of allowances for the period,
they must—
(a)
set a limit on the total amount of the allowances to be allocated for
10
the period, and
(b)
require each participant to acquire enough credits to offset any
activities carried on by the participant in the period in excess of those
for which the participant has or has acquired allowances.
      (4)
Otherwise, such regulations must—
15
(a)
set a limit on the amount of the activities that each participant may
carry on in the period, and
(b)
require each participant to acquire enough credits to offset any
activities carried on by the participant in the period in excess of that
limit.
20
      (5)
The regulations must specify—
(a)
the descriptions of credits that may be used for offsetting a
participant’s activities,
(b)
the value of different descriptions of credit as regards the amount of
the activities they are treated as offsetting, and
25
(c)
the circumstances in which credits of any description may be used
for the purposes of the trading scheme.
      (6)
The regulations—
(a)
must contain provision for ensuring that credits used to offset
activities under a trading scheme cannot be used by the participant
30
for any other purpose;
(b)
may enable credits to be cancelled by a person by whom they are
held instead of being used for that purpose.
Payments
8     (1)
The regulations may provide that a participant who does not have or acquire
35
enough allowances or credits to match or offset the participant’s activities in
a trading period must pay an amount specified in or determined in
accordance with the regulations within the period so specified.
      (2)
The regulations may require the payment to be made to—
(a)
the administrator, or
40
(b)
such other person as the regulations may specify.
      (3)
The provision that may be made about the amount of the payment includes,
in particular, provision—
(a)
for the amount to be determined by the administrator or a national
authority;
45

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 1 — Schemes limiting activities
56

(b)
in a case where the payment is not made within the period specified
in the regulations, for the amount to increase at the rate so specified
until payment;
(c)
for the amount of the payment, or of any amount by reference to
which it is to be calculated, to be adjusted from time to time by
5
reference to inflation or some other factor.
      (4)
Provision within sub-paragraph (3)(c) may refer, in particular, to an index or
data specified in the regulations (including as modified from time to time
after the regulations come into force).
      (5)
If the regulations provide for payments to be made to a person other than a
10
national authority, they must provide for that person to pay the sums
received to the national authority or authorities specified in or determined
in accordance with the regulations.
Trading
9     (1)
The regulations must provide for the participants in a trading scheme to
15
trade in any allowances or credits under the scheme.
      (2)
The regulations may also provide for trading in the allowances or credits by
third parties authorised in accordance with the regulations.
      (3)
The regulations must specify the circumstances in which trading is
permitted.
20
      (4)
The regulations may require trading to be notified to the administrator of the
trading scheme.
Permits
10    (1)
The regulations may provide that participants may only carry on activities
to which the trading scheme applies, or specified activities to which the
25
scheme applies, if they hold a permit.
      (2)
The regulations may make provision about the issue, variation, transfer,
surrender and revocation of permits.
      (3)
The regulations may provide for conditions to be attached to permits.
      (4)
References in this Schedule to the requirements of the scheme include
30
requirements imposed by conditions attached to a permit.
Units under other schemes
11    (1)
The regulations may make provision for recognising any of the following as
equivalent to allowances or credits under the trading scheme—
(a)
allowances, credits or certificates under another trading scheme for
35
which provision is made by regulations under this Part of this Act;
(b)
units under any other trading scheme (at United Kingdom,
European or international level) relating to greenhouse gas
emissions.
      (2)
The regulations may provide—
40
(a)
for determining the value for the purposes of the scheme of any such
allowances, credits, certificates or units, and

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 2 — Schemes encouraging activities
57

(b)
for the use for the purposes of the scheme of any such allowances,
credits, certificates or units to be subject to such conditions and
limitations as may be specified in or determined in accordance with
the regulations.
Part 2
5
Schemes encouraging activities
Introductory
12
This Part of this Schedule deals with trading schemes that operate by
encouraging activities that consist of, or that cause or contribute, directly or
indirectly to—
10
(a)
reductions in greenhouse gas emissions, or
(b)
the removal of greenhouse gas from the atmosphere.
Trading periods
13
The regulations must specify the period or periods by reference to which the
scheme is to operate (a “trading period”).
15
Activities
14    (1)
The regulations must identify the activities to which the trading scheme
applies.
      (2)
The regulations may identify the activities by reference to any, or any
combination of, criteria and in particular—
20
(a)
may identify the activities by reference to the locations or locations
at which they are carried on, or
(b)
may be expressed to apply to all activities of a particular kind carried
on in the United Kingdom or a part of the United Kingdom.
      (3)
The regulations must specify the units of measurement of the activities for
25
the purposes of the scheme.
      (4)
The regulations may specify units of measurement by reference to—
(a)
the activities themselves,
(b)
anything consumed or used for the purposes of the activities,
(c)
anything produced by the activities, or
30
(d)
any other consequence of the activities.
      (5)
The regulations may, in particular, make provision—
(a)
for activities to be measured by reference to the amount (in tonnes of
carbon dioxide equivalent) of the reduction of greenhouse gas
emissions, or removals of greenhouse gas from the atmosphere, for
35
which those activities are to be regarded as responsible; and
(b)
as to the method by which that amount is to be measured or
calculated.
      (6)
The regulations may make different provision in relation to different
descriptions of activity to which the scheme applies.
40

Climate Change Bill [HL]
Schedule 2 — Trading schemes
Part 2 — Schemes encouraging activities
58

Participants
15    (1)
The regulations must identify the persons to whom the trading scheme
applies (the “participants”).
      (2)
The regulations—
(a)
may identify the participants by reference to any, or any combination
5
of, criteria, or
(b)
provide for their identification by a specified person or body.
      (3)
The regulations may provide for more than one person to be treated as a
single participant.
      (4)
The regulations may provide for persons to cease to be participants in
10
circumstances specified in the regulations.
Targets and obligations
16
The regulations must, for each trading period—
(a)
set a target for the total amount of the activities, and
(b)
impose, or provide for the imposition of, an obligation on each
15
participant in relation to the carrying on of a specified amount of the
activities in the period.
Certificates
17    (1)
The regulations must provide for the issue of certificates evidencing the
carrying on of the activities in a trading period.
20
      (2)
The regulations may provide for certificates to evidence the carrying on of
the activities—
(a)
by the participant in question,
(b)
by another participant in the trading scheme, or
(c)
by a third party authorised in accordance with the regulations to
25
obtain certificates for the purposes of the scheme.
      (3)
The regulations must require each participant to have enough certificates at
the end of each trading period to comply with the participant’s obligations
under the trading scheme.
      (4)
The regulations must contain provision for ensuring that certificates used by
30
a participant for that purpose cannot be used by the participant for any other
purpose.
      (5)
The regulations—
(a)
may provide for the expiry of certificates after such period as may be
specified in or determined in accordance with the regulations;
35
(b)
may enable certificates to be cancelled by a person by whom they are
held instead of being used for the purposes of a trading scheme.
Payments
18    (1)
The regulations may provide that a participant who does not have enough
certificates at the end of a trading period to comply with the participant’s
40
obligations under the trading scheme must pay an amount specified in or