House of Lords portcullis
House of Lords
Session 2007 - 08
Internet Publications
Other Bills before Parliament

Climate Change Bill [HL]


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

44

 

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

Scotland of any function to the extent that the function is not

exercisable within devolved competence (within the meaning of

5

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.”

Public Services Ombudsman (Wales) Act 2005 (c. 10)

33         

In Schedule 3 to the Public Services Ombudsman (Wales) Act 2005 (listed

10

authorities), after the heading “Environment” insert—

“The Committee on Climate Change.”

Schedule 2

Section 38

 

Trading schemes

Part 1

15

Schemes limiting activities

Introductory

1          

This Part 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.

20

Trading periods

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

25

applies.

      (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

30

(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

the purposes of the scheme.

      (4)  

The regulations may specify units of measurement by reference to—

35

(a)   

the activities themselves,

 

 

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

45

 

(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

5

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

10

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”).

      (2)  

The regulations—

15

(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

of the participants by reference to their responsibility for activities to which

20

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

circumstances specified in the regulations.

25

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.

      (2)  

The regulations may set a limit on—

30

(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.

      (4)  

The regulations may not provide for allowances to be allocated in return for

35

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

to any offsetting in accordance with provision made under paragraph 7.

40

      (2)  

The regulations—

 

 

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

46

 

(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,

(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

5

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

in accordance with the regulations.

      (3)  

The regulations must contain provision for ensuring that allowances used

10

by a participant for the purposes of a trading scheme cannot be used by the

participant for any other purpose.

      (4)  

The regulations—

(a)   

may provide for the expiry of allowances after such period as may be

specified in or determined in accordance with the regulations;

15

(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.

Credits

7     (1)  

The regulations may enable participants to offset the carrying on of the

activities in a trading period by acquiring credits representing—

20

(a)   

a reduction in an amount of greenhouse gas emissions, or

(b)   

the removal of an amount of greenhouse gas from the atmosphere.

      (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,

25

they must—

(a)   

set a limit on the total amount of the allowances to be allocated for

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

30

for which the participant has or has acquired allowances.

      (4)  

Otherwise, such regulations must—

(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

35

activities carried on by the participant in the period in excess of that

limit.

      (5)  

The regulations must specify—

(a)   

the descriptions of credits that may be used for offsetting a

participant’s activities,

40

(b)   

the value of different descriptions of credit as regards the amount of

the activities they are treated as offsetting, and

(c)   

the circumstances in which credits of any description may be used

for the purposes of the trading scheme.

      (6)  

The regulations—

45

 

 

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

47

 

(a)   

must contain provision for ensuring that credits used to offset

activities under a trading scheme cannot be used by the participant

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.

5

Payments

8     (1)  

The regulations may provide that a participant who does not have or acquire

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.

10

      (2)  

The regulations may require the payment to be made to—

(a)   

the administrator, or

(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—

15

(a)   

for the amount to be determined by the administrator or a national

authority;

(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;

20

(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

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

25

after the regulations come into force).

      (5)  

If the regulations provide for payments to be made to a person other than a

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.

30

Trading

9     (1)  

The regulations must provide for the participants in a trading scheme to

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.

35

      (3)  

The regulations must specify the circumstances in which trading is

permitted.

      (4)  

The regulations may require trading to be notified to the administrator of the

trading scheme.

Permits

40

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

scheme applies, if they hold a permit.

 

 

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

48

 

      (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

requirements imposed by conditions attached to a permit.

5

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

which provision is made by regulations under this Part;

10

(b)   

units under any other trading scheme (at United Kingdom,

European or international level) relating to greenhouse gas

emissions.

      (2)  

The regulations may provide—

(a)   

for determining the value for the purposes of the scheme of any such

15

allowances, credits, certificates or units, and

(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.

20

Part 2

Schemes encouraging activities

Introductory

12         

This Part deals with trading schemes that operate by encouraging activities

that consist of, or that cause or contribute, directly or indirectly to—

25

(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”).

30

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—

35

(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.

 

 

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

49

 

      (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,

(b)   

anything consumed or used for the purposes of the activities,

5

(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

carbon dioxide equivalent) of the reduction of greenhouse gas

10

emissions, or removals of greenhouse gas from the atmosphere, 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

15

descriptions of activity to which the scheme applies.

Participants

15    (1)  

The regulations must identify the persons to whom the trading scheme

applies (the “participants”).

      (2)  

The regulations—

20

(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 provide for more than one person to be treated as a

single participant.

25

      (4)  

The regulations may provide for persons to cease to be participants in

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

30

(b)   

impose, or provide for the imposition of, an obligation on each

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

35

carrying on of the activities in a trading period.

      (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

40

(c)   

by a third party authorised in accordance with the regulations to

obtain certificates for the purposes of the scheme.

 

 

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

50

 

      (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

a participant for that purpose cannot be used by the participant for any other

5

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;

(b)   

may enable certificates to be cancelled by a person by whom they are

10

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

obligations under the trading scheme must pay an amount specified in or

15

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

(b)   

such other person as the regulations may specify.

20

      (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;

(b)   

in a case where the payment is not made within the period specified

25

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

reference to inflation or some other factor.

30

      (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

national authority, they must provide for that person to pay the sums

35

received to the national authority or authorities specified in or determined

in accordance with the regulations.

Trading

19    (1)  

The regulations must provide for the participants in a trading scheme to

trade in certificates.

40

      (2)  

The regulations may also provide for trading in certificates by third parties

authorised in accordance with the regulations.

      (3)  

The regulations must specify the circumstances in which trading is

permitted.

 

 

 
previous section contents continue
 
House of Lords home page Houses of Parliament home page House of Commons home page search page enquiries

© Parliamentary copyright 2008
Revised 5 February 2008