Greenhouse Gas Emissions Trading Scheme Order 2020
What this means for your business
- Enforced by
- Environment Agency, Ofgem
- Applies to
- United Kingdom
- On this page
- 17 compliance obligations, 1 practical guide
What you must do
17 compliance obligations under this legislation.
Offences and prohibitions 17
Carry out regulated activity without a permit
Unlimited fineIf you operate a plant that is covered by the Greenhouse Gas Emissions Trading Scheme and you carry out a regulated activity without the required permit, you will be liable for a civil penalty. The penalty is calculated based on the cost savings you achieved and the amount of emissions released, multiplied by the carbon price for the year, and can be increased to ensure it exceeds any benefit you gained.
Fail to apply for or revise emissions monitoring plan
Fine up to £45,000If your airline or charter company does not submit an emissions monitoring plan to the regulator when required, or does not submit a revised plan on time, you commit an offence. On conviction you will face a civil penalty of £20,000 plus a daily charge of £500 for each day the plan is overdue, up to a total of £45,000. There is no prison term for this breach.
Fail to apply to surrender permit
Fine up to £5,000If the operator of a greenhouse‑gas emissions installation does not submit an application to surrender its permit, or submits it late, the business commits an offence. On conviction the operator faces a civil penalty of £5,000. The Environment Agency can enforce this penalty.
Fail to comply with emissions monitoring plan condition
Fine up to £45,000If your business operates aircraft and has an emissions monitoring plan, you must meet every condition of that plan on time. Failing to do so – or being late – makes you liable for a civil penalty of £20,000, plus a daily charge of £500 for each day the breach continues, up to a total of £45,000. The Environment Agency can enforce this penalty.
Fail to comply with enforcement notice
Fine up to £45,000If your business receives an enforcement notice under the Greenhouse Gas Emissions Trading Scheme and you do not follow its requirements (or you miss the deadline), you will be hit with a civil penalty. The default fine is £20,000, and you’ll also incur a daily charge of £1,000 for each day you remain out of compliance, up to a total of £45,000.
Fail to comply with greenhouse gas permit conditions
Fine up to £45,000If you operate an installation covered by the Greenhouse Gas Emissions Trading Scheme and you do not meet the conditions of your greenhouse gas permit, hospital or small‑emitter permit, or the requirements set out in surrender or revocation notices, you commit an offence. On conviction you will be liable for a civil penalty of £20,000 plus a daily fine of £500 for each day of non‑compliance, capped at a total of £45,000.
Fail to comply with information notice
Fine up to £45,000If you are served with an information notice under article 75 of the Greenhouse Gas Emissions Trading Scheme, you must provide the requested information by the deadline set in the notice. Failing to do so (or failing to do it on time) creates a civil offence. On conviction you could be ordered to pay a fine of £5,000 plus a daily default fine of £500 for each day of non‑compliance, up to a total of £45,000.
Fail to comply with notice to return allowances
Fine up to £20,000If you receive a notice requiring you to return emission allowances and you do not comply – or you do so late – you commit an offence. On conviction you face a civil penalty of £20,000 plus a daily charge of £1,000 for each day the breach continues, starting from the day the notice is issued.
Fail to comply with regulator’s information or record request
Unlimited fineIf you refuse or neglect to meet a requirement the regulator imposes – for example providing records, answering questions, attending a meeting or allowing inspection – you commit a criminal offence. The offence also covers actively obstructing the regulator or preventing others from cooperating. On conviction you face an unlimited fine, which can be imposed either in the Magistrates’ Court or the Crown Court.
Fail to monitor aviation emissions
Fine up to £45,000If your company operates aircraft and does not monitor the emissions of those flights as required by article 32(1), you commit an offence. The Environment Agency can impose a civil penalty of £20,000 plus a daily fine of £500 until you start monitoring, but the total fine cannot exceed £45,000. No imprisonment is involved.
Fail to pay civil penalty for exceeding emissions target
Unlimited fineIf your hospital or small emissions installation exceeds its emissions target and you receive a civil penalty, you must pay that penalty by the date shown on the notice. If you do not pay on time, you will face an extra penalty of 10% of the original amount plus a daily charge of £150, up to a maximum of £13,500.
Fail to submit aviation emissions report
Fine up to £45,000If you operate an aircraft you must send a verified report of your aviation emissions to the regulator on time. Failing to do so (or sending it late) is a civil offence. On conviction you will be ordered to pay a £20,000 fine plus a daily charge of £500 until the report is received, but the total charge cannot exceed £45,000.
Fail to submit information required by article 27A
Fine up to £45,000If the operator of a greenhouse‑gas installation does not provide the information required by article 27A, or provides it late, the business commits an offence. The Environment Agency can impose a civil penalty of £5,000 plus a daily fine of £500 for each day the breach continues, with the total fine capped at £45,000. The penalty is a civil fine only – there is no imprisonment.
Fail to surrender allowances after deficit notice
Unlimited fineIf you receive a deficit notice under the greenhouse‑gas emissions trading scheme and do not surrender the required allowances (or miss the deadline), you will be subject to a civil penalty. The penalty is calculated as 1.5 times the carbon price for each allowance you fail to surrender, plus a daily charge of £1,000 for every day the breach continues.
Fail to transfer or surrender emissions allowances after under‑reporting discovered
Unlimited fineIf your business discovers that it has under‑reported its emissions after it has already transferred allowances, you must still transfer or surrender the correct number of allowances. Failing to do so triggers a civil penalty calculated at 1.5 times the carbon price for each missed allowance, plus a daily default fine of £1,000 for each day the breach continues.
Provide false or misleading information in emissions applications
Fine up to £50,000If your business submits an application, notice, permit condition, monitoring plan or aviation emissions report under the Greenhouse Gas Emissions Trading Scheme Order and the information is false or misleading, you commit an offence. The penalty is a civil fine of up to £50,000. The offence applies to any person who provides the information.
Refuse regulator access to premises
Fine up to £50,000If you are the person in control of a premises covered by the Greenhouse Gas Emissions Trading Scheme and you prevent the regulator or an authorised person from entering when they request access under article 39(3), you commit an offence. The regulator can impose a civil penalty of up to £50,000. You must ensure staff allow such access to avoid the fine.
Penalties for non-compliance
17 penalties under this legislation. 5 carry an unlimited fine.
Carry out regulated activity without a permit
Unlimited fine
Fail to comply with regulator’s information or record request
Unlimited fine
Fail to pay civil penalty for exceeding emissions target
Unlimited fine
Fail to surrender allowances after deficit notice
Unlimited fine
Fail to transfer or surrender emissions allowances after under‑reporting discovered
Unlimited fine
Provide false or misleading information in emissions applications
Fine up to £50,000
Refuse regulator access to premises
Fine up to £50,000
Fail to apply for or revise emissions monitoring plan
Fine up to £45,000
Fail to comply with emissions monitoring plan condition
Fine up to £45,000
Fail to comply with enforcement notice
Fine up to £45,000
Fail to comply with greenhouse gas permit conditions
Fine up to £45,000
Fail to comply with information notice
Fine up to £45,000
Fail to monitor aviation emissions
Fine up to £45,000
Fail to submit aviation emissions report
Fine up to £45,000
Fail to submit information required by article 27A
Fine up to £45,000
Fail to comply with notice to return allowances
Fine up to £20,000
Fail to apply to surrender permit
Fine up to £5,000
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
118 classified provisions from this legislation.
Duties 26
- Schedule 10 Appeals to Planning Appeals Commission (Northern Ireland) requests by either party
- s.12 Aircraft operator: change in regulator
- s.17 Review of UK ETS
- s.27 Installations: requirement to surrender allowances
- s.28 Application for emissions monitoring plans An aircraft operator
- s.29 Issue of emissions monitoring plans
- s.30 Refusal of application for emissions monitoring plans
- s.31 Variation of emissions monitoring plans
- s.32 Monitoring emissions and emissions monitoring plan conditions aircraft operator
- s.34 Surrender of allowances by aircraft operators
- s.36 Charging scheme: regulators
- s.44 Enforcement notices
- s.45 Determination of reportable emissions or aviation emissions by regulator
- Allocation of allowances Allocation of allowances other scheme year
- Allocation tables for 2021-2025 and 2027-2030 allo Allocation tables for 2021-2025 and 2027-2030 allocation periods
- Allocation tables: publication, etc. Allocation tables: publication, etc. The UK ETS authority
- Aviation: allocation of allowances for 2021-2025 a Aviation: allocation of allowances for 2021-2025 allocation period allocation
- Aviation allocation table for 2021-2025 allocation Aviation allocation table for 2021-2025 allocation period The UK ETS authority
- Charging scheme: registry administrator Charging scheme: registry administrator
- Errors in aviation allocation table Errors in aviation allocation table corrections
- ... and 6 more duties
Offences and penalties 19
- s.40 Powers of entry, etc.
- s.47 Penalty notices
- s.50 Installations: carrying out regulated activity without permit contrary to article 26
- s.51 Installations: failure to comply with conditions of permit, etc.
- s.53 Installations: failure to transfer or surrender allowances where underreporting discovered after transfer
- s.55 Hospitals and small emitters: failure to pay civil penalty for exceeding emissions target
- s.58 Installations: failure to apply to surrender permit
- s.61 Aviation: failure to apply or make revised application for emissions monitoring plan
- s.62 Aviation: failure to comply with condition of emissions monitoring plan
- s.63 Aviation: failure to monitor aviation emissions
- s.64 Aviation: failure to report aviation emissions
- s.65 Failure to comply with enforcement notice ......
- s.66 Failure to comply with information notice
- s.67 Providing false or misleading information, etc.
- s.68 Inspection: refusal to allow access to premises
- s.70 Right of appeal
- Failure to comply with deficit notice Failure to comply with deficit notice
- Failure to comply with notice to return allowances Failure to comply with notice to return allowances
- Installations: failure to submit information under Installations: failure to submit information under article 27A
Powers 8
- s.18 Allowances
- s.35 Charges
- s.41 Warrants
- s.72 Effect of appeals
- s.75 Information notices
- Application for aviation free allocation entitleme Application for aviation free allocation entitlement
- No allocation unless monitoring methodology plan a No allocation unless monitoring methodology plan approved
- Notice to withhold allowances Notice to withhold allowances
Definitions 24
- Schedule 2 Meaning of installation and regulated activity
- s.5 Meaning of operator
- s.6 Meaning of aircraft operator
- Schedule 7 Hospitals and small emitters
- Schedule 9 Appeals to Scottish Land Court
- s.14 Meaning of UK ETS authority, etc.
- s.38 Authorised persons
- s.43 Legal professional privilege
- s.46 Carbon price futures contract relevant period
- s.54 Hospitals and small emitters: exceeding emissions target
- s.56 Hospitals and small emitters: under-reporting of emissions
- s.57 Hospitals and small emitters: failure to notify when ceasing to meet criteria
- s.59 Ultra-small emitters: reportable emissions exceeding maximum amount
- s.69 Interpretation
- s.71 Appeal body
- Flexible reserve Flexible reserve
- Interpretation Interpretation
- Meaning of FA installation, etc. Meaning of FA installation, etc.
- Meaning of historical aviation activity level and Meaning of historical aviation activity level and attributable aviation activity ratio threshold figure
- Meaning of registry administrator Meaning of registry administrator
- ... and 4 more definitions
Exemptions 13
- s.8 Exempt non-commercial air transport operators
- Schedule 11 Transitional provisions: installations
- s.20 Cap for scheme years
- s.26 Installations: requirement for permit to carry out regulated activity
- s.33 Reporting aviation emissions
- s.37 Remittance of charges
- s.39 Inspections
- s.42 Admissible evidence
- s.48 Penalty notices: supplementary
- s.49 Regulator must publish names of persons subject to civil penalty under article 52
- s.60 Ultra-small emitters: failure to notify where reportable emissions exceed maximum amount
- Processing of applications and calculation of avia Processing of applications and calculation of aviation free allocation entitlement
- Restriction on disclosing information Restriction on disclosing information