The Climate Change Act 2008 (Credit Limit) Order 2021 sets a limit of 55 million carbon units that may be credited to meet the 2023-2027 UK carbon budget under the Climate Change Act 2008.
Each carbon unit represents one tonne of carbon dioxide equivalent (tCO2e).
Exclusions
This limit excludes any net use of credits under the EU Emissions Trading System (EU ETS). Following Brexit, the only installations subject to the EU ETS are power stations providing transboundary electricity supplies to the Republic of Ireland.
Background
The Climate Change Act 2008 requires the government to achieve a 100% (net zero) reduction target in carbon emissions by 2050 based on 1990 levels.
Under section 4 of the Act, the government is obliged to set and meet carbon budgets every five years in order to meet that target.
Definitions
The net UK carbon account means the amount of net UK emissions of targeted greenhouse gases for a certain period, reduced by the amount of carbon units credited to the net UK carbon account or increased by the amount to be debited from the net UK carbon account.
CLIMATE CHANGE LEVY (GENERAL) (AMENDMENT AND MODIFICATION) REGULATIONS 2021
The Climate Change Levy (General) (Amendment and Modification) Regulations 2021 amended the Climate Change Levy (General) Regulations 2001 and come into force on 1 July 2021.
This legislation applies across the UK.
What has changed?
The definition of the Combined Heat and Power Quality Assurance Standard (CHPQA) and certificates issued under it are updated to refer to issue 8 of the CHPQA standard. This temporary change will apply between 1 July 2021 to 28 May 2022 inclusive. After this date issue 7 of the CHPQA will come back into effect.
The modifications provide a temporary COVID-19 easement of the CHPQA scheme. This reflects that during the pandemic a range of Combined Heat and Power (CHP) stations were required to either partially or fully shut down. This may have had impacts on their efficiency and without issue 8 of the standard the benefits of the CHPQA certification could have been affected.
Similar Legislation
Modifications to the CHPQA scheme reflect similar modifications by the Renewable Heat Incentive Scheme (Temporary Modification) Regulations 2021 and the Combined Heat and Power Quality Assurance (Temporary Modifications) Regulations 2021. These relaxations will all operate until the same end date.
The Combined Heat and Power Quality Assurance (CHPQA) scheme is a UK-wide voluntary programme to assess and certify efficient CHP stations.
Good quality CHP receives a range of financial benefits including an exemption from the climate change levy on electricity supplied, carbon price floor relief and enhanced capital allowances.
FINANCE ACT 2021: RATES OF CLIMATE CHANGE LEVY RATES AND CLIMATE CHANGE AGREEMENT REDUCTIONS
Section 109 and Section 110 of the Finance Act 2021 set the rates of climate change levy from 1 April 2022 and 1 April 2023 respectively. The rates of levy in 2021, 2022 and 2023 are set out below.
April 2021
April 2022
April 2023
Units
Electricity
0.775
p/kWh
Natural Gas
0.465
0.568
0.672
LPG
2.175
p/kg
Any other taxable commodity
3.640
4.449
5.258
Reduced Rates for Holders of Climate Change Agreements (CCAs)
CCAs are available to certain energy intensive sectors. Participation currently provides levy reductions. Section 109 and Section 110 set reduced rates from 1 April 2022 and 1 April 2023, which are shown alongside rates applicable from 1 April 2021 below.
Levy Reduction for Consumption subject to a CCA
1 April 2021
1 April 2022
1 April 2023
92%
83%
86%
88%
LPG or other hydrocarbon gas
77%
New publications this month:
CLIMATE CHANGE COMMITTEE (CCC)
Independent Assessment of UK Climate Risk
This assessment is the third to be released as part of the CCC’s obligations under the Climate Change Act 2008. According to the CCC, efforts to manage climate risks in the UK have been “underfunded and ignored”, leaving the nation vulnerable to rising temperatures. “Action to improve the nation’s resilience is failing to keep pace with the impacts of a warming planet and increasing climate risks facing the UK”
The UK is also experiencing widespread changes in the climate; average land temperature has risen by around 1.2°C from pre-industrial levels, UK sea levels have risen by 16cm since 1900 and episodes of extreme heat are becoming more frequent.’
Since the CCC’s last assessment 5 years ago, over 570,000 new homes have been built that are not resilient to future high temperatures and since 2018 over 4,000 heat-related deaths have been recorded in England.
ENVIRONMENT AGENCY
Use nature-based solutions to reduce flooding in your area
This new document provides advice on nature-based solutions to reduce flood risks and funding available.
Collecting and storing food waste: LRWP 84
This low risk waste position allows organisations to collect and store food waste without a permit, provided the conditions of the position are met.
CORSIA: how to comply
The Air Navigation Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) Order 2021 implemented the CORSIA scheme in the UK. This guidance provides support to UK-administered aeroplane operators on compliance.
Modified Regulatory Position Statements (RPSs)
The following RPSs concerning medium combustion plant are no longer available for new applications:
Extended COVID-19-related RPSs
The following RPSs have been extended until 31 December 2021:
The following RPS has been extended to 30 September 2021:
SCOTTISH ENVIRONMENTAL PROTECTION AGENCY (SEPA) AND DEPARTMENT OF AGRICULTURE, ENVIRONMENT AND RURAL AFFAIRS (DAERA)
Updated Guidance for Pollution Prevention (GPP): GPP21 Pollution Incident Response Planning
This updated GPP was published during June 2021.
DEPARTMENT FOR ENVIRONMENT, FOOD AND RURAL AFFAIRS (DEFRA)
Complete a runoff and soil erosion risk assessment
Advice is provided on completing soil risk assessments, which will identify where the risk of run-off erosion and flooding can be reduced.
Create and use a soil management plan
Guidance is provided for land managers on how soil management can present environmental benefits, reduce soil risks and improve crop yields.
List of plants and wood that need a plant passport for movement within Great Britain
This list has been updated to include isolated bark from walnut and wingnut. This material will now require a plant passport to move it within Great Britain.
DEPARTMENT FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY (BEIS)
UK ETS Aviation Allocation Table
The free allocation of UK ETS allowances for each aircraft operator in the period between 2021 and 2025 has been published.
Changes to PAS 2030:2017
PAS 2030 is a Publicly Available Specification for the installation of energy efficiency measures in existing buildings. Guidance is provided on changes to this scheme, which must be applied from 31 October 2021.
Green Heat Network Fund (GHNF) Transition Scheme
The GHNF Transition Scheme aims to support commercialisation of low-carbon heat network projects. The scheme opens to applications on 5 July 2021.
End to coal power brought forward to October 2024
BEIS has announced that the deadline to phase out coal from Great Britain’s energy network has been brought forward by a year to October 2024.
End of halogen light bulbs spells brighter and cleaner future
Planned legislation will ban the sale of the remaining types of halogen lightbulbs from September 2021 and the sale of high-energy fluorescent lightbulbs from September 2023.
DEPARTMENT FOR WORK AND PENSIONS
Governance and reporting of climate change risk: guidance for trustees of occupational schemes
This guidance aims to improve governance and the level of action taken by trustees in identifying, assessing and managing climate risk.
SCOTTISH ENVIRONMENTAL PROTECTION AGENCY (SEPA)
The Scottish Material Flow Accounts (MFA)
This report identifies the size of Scotland’s material footprint for the first time. The document calculates all raw materials used to make products and finish products consumed in Scotland, whether made within Scotland or imported. The report aims to support moves towards a circular economy.
An interactive version of the MFA has also been made available.
WELSH GOVERNMENT
Reducing emissions in Wales: Welsh Government response
This document presents the Welsh Government’s response to the Climate Change Committee’s 2020 Progress Report
Petroleum Exploration and Development Licence consent tracker
This spreadsheet provides details of petroleum licences issued by the UK Government for Wales and their status.
Dŵr Cymru Welsh Water receive six figure fine for 2018 pollution incident
Dŵr Cymru Welsh Water (DCWW) has received a large fine after pollution from a wastewater treatment plant caused the largest fish kill recorded in North Wales to date.
It was found that DCWW illegally discharged crude settled sewage from the Five Fords wastewater treatment plant in September 2018. The incident is understood to have arisen when a colony of snails built up at the wastewater treatment plant. DCWW then decided to clean out a chamber and a mistake made resulted in storm tanks overflowing during the activity.
The pollution incident led to up to 675,000 litres of untreated sewage being discharged. The pollution incident from the plant, which is near Wrexham, affected 9km of the River Clywedog. Over 3,000 fish were killed, affecting species including brown trout, bullhead, lamprey, stoneloach, salmon, parr, chub, eel, stickleback, perch and minnow.
Natural Resources Wales subsequently worked closely with DCWW to restore the river.
Penalty
DCWW was fined £180,000 and ordered to pay £25,871.60 in costs
Waste wood company in East Anglia goes into liquidation in advance of court sentencing
East Anglian Resources Ltd has been sentenced for failing to manage the risk of fire and containment of dust. The company was also sentenced for causing dust emissions impacting on neighbouring businesses and a fishing lake.
Environment Agency officers visited the waste wood recycling site on more than 30 occasions after the permit was issued in 2016. Officers found that piles of waste wood were frequently too large and too close together. This posed a serious risk of fire by spontaneous combustion.
East Anglian Resources Ltd had a Fire Prevention Plan in place but persistently failed to comply with it. The Environment Agency suspended the permit three times to force the company to comply, but this had a limited impact.
Officers also noted that dusty material was allowed to accumulate and that the dust was not suppressed. Dust escaped from the site on many occasions, affecting neighbouring businesses and visitors to a nearby fishing lake.
When interviewed, the director of the company at the time, stated that the company relied heavily on one customer taking 80% or more of its waste. On occasions when that customer’s site was closed, waste built up on the site in huge piles. The director accepted that waste piles were massive but said that the site had never had a fire. He said they had tried to find alternative outlets and had done the best they could.
Since the prosecution began, East Anglian Resources Ltd has abandoned its site at Benwick Road Industrial Estate and the company has gone into liquidation.
Breaches
East Anglian Resources Ltd pleaded guilty to two separate breaches of Regulation 38(2) of the Environmental Permitting (England and Wales) Regulations 2016, by failing to comply with condition 1.1.1(a) and condition 3.1.1 of its environmental permit.
East Anglian Resources Ltd was sentenced in its absence and fined £26,800, as well as being ordered to pay costs of £29,110.18 and a victim surcharge of £170.
Supplier of fresh mushrooms enters enforcement undertaking after failing to meet its packaging obligations
Walsh Mushrooms Group has entered into an enforcement undertaking with the Environment Agency after it was found to have failed to meet its obligations regarding packaging waste between 2007 and 2017.
The Environment Agency found that Walsh Mushrooms Group had failed to meet its obligations under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007 as a supplier of packaged goods. This legislation is designed to ensure companies take a responsible approach to packaging materials.
During the period of non-compliance, the Environment Agency estimates that nearly 9,000 tonnes of packaging was supplied.
As an alternative to prosecution, the company made an enforcement undertaking offer to the Environment Agency.
Walsh Mushrooms Group was found to have breached Regulation 40(1)(a) and Regulation 40(1)(b) of the Producer of Responsibility Obligations (Packaging Waste) Regulations 2007:
Enforcement Undertaking
Walsh Mushrooms Group is now understood to be working within the rules. The company has made a payment of £54,880.33 to the Marine Conservation Society as part of the enforcement undertaking.
