Climate Change Citation and commencement 1 These Regulations may be cited as the Carbon Accounting Scheme (Scotland) Regulations 2010 and come into force on the day after the day they are made. Interpretation 2 In these Regulations— “ 2009 Regulations ” means the Carbon Accounting Regulations 2009 ; “Annex I” means Annex I of Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC ; “cancellation” of a carbon unit means the crediting of the unit in the Voluntary Cancellation Account in the UK registry, and a unit so credited is “cancelled”; “ EU ETS ” means the European Union Emissions Trading Scheme established under Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC ; “ Kyoto Protocol ” means the Kyoto Protocol to the UNFCCC signed at Kyoto on 11th December 1997 ; “Registries Regulation” means Commission Regulation ( EU ) No 389/2013 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/ EC and No 406/2009/ EC of the European Parliament and of the Council and repealing Commission Regulations ( EU ) No 920/2010 and No 1193/2011; “ registry administrator ” means the national administrator for the UK Registry specified in Article 3(2)(k) of the Registries Regulation , “ UNFCCC ” means the United Nations Framework Convention on Climate Change signed at New York on 9th May 1992 ; and “ UK registry ” means the registry established for the United Kingdom in accordance with the Registries Regulation. References to community instruments 3 References in these Regulations to Community instruments are references to those instruments as amended from time to time. Carbon units 4 1 A carbon unit for the purposes of the Climate Change (Scotland) Act 2009 is a unit of the following kind:— a assigned amount unit; b European Union allowance; c certified emission reduction; and d emission reduction unit. 2 A carbon unit has a value of 1 tonne of carbon dioxide equivalent. 3 In this regulation— “ assigned amount unit ” means a unit issued— under Article 7(3) of Decision No 280/2004/EC of the European Parliament and of the Council concerning a mechanism for monitoring Community greenhouse gas emissions and for implementing the Kyoto Protocol; or by a party to the Kyoto Protocol which is not subject to that Decision; “European Union allowance” means an allowance for the purposes of the EU ETS ; “ certified emission reduction ” means a unit issued under Article 12 of the Kyoto Protocol and the Decisions adopted under the UNFCCC or the Kyoto Protocol; and “ emission reduction unit ” means a unit issued under Article 6 of the Kyoto Protocol and the Decisions adopted under the UNFCCC or the Kyoto Protocol. Carbon accounting scheme 5 1 The Scottish Ministers must on or before 1st August 2010 instruct the registry administrator to open an account (“the Scottish credit account”) in the UK registry. 2 The Scottish credit account— a must be used to hold a carbon unit that is to be credited to the net Scottish emissions account; and b may be used to hold any other carbon unit. 3 The Scottish Ministers may only instruct the registry administrator to transfer a carbon unit from the Scottish credit account— a for cancellation; or b to the credit account opened in accordance with regulation 4 of the 2009 Regulations. 4 The Scottish Ministers may only instruct a transfer under paragraph 3(b) if they are satisfied that the carbon unit will be credited to the net UK carbon account in accordance with regulation 5 of the 2009 Regulations. Carbon units transferred 6 1 A carbon unit transferred in accordance with regulation 5(3)(b) in respect of which— a a declaration is made in accordance with regulation 5(2)(b) of the 2009 Regulations, may be treated by the Scottish Ministers as credited to the net Scottish emissions account; or b no such declaration is made, is to be dealt with in accordance with paragraph (2). 2 Where this paragraph applies, the Scottish Ministers must instruct the registry administrator to transfer the carbon unit to the Scottish credit account. Crediting of carbon units to the net Scottish emissions account 7 1 A carbon unit is credited to the net Scottish emissions account if— a a person transfers the carbon unit to the Scottish credit account; and b the Scottish Ministers declare that the carbon unit is credited to the net Scottish emissions account. 2 A declaration under paragraph (1)(b)— a must state the year in respect of which the carbon unit is to be credited; and b may be made in such manner and at such time as the Scottish Ministers consider appropriate. 3 The Scottish Ministers must not make a declaration under paragraph (1)(b) if they reasonably believe that the carbon unit has been used to offset greenhouse gas emissions which are not Scottish emissions. 4 A carbon unit which is credited to the net Scottish emissions account in accordance with this regulation must have been cancelled. Crediting and debiting of carbon units to the net Scottish emissions account in connection with the EU ETS 8 1 The Scottish Ministers shall in respect of each year in the period 2010–2012 calculate whether any carbon unit is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS . 2 Calculations under this regulation must be performed— a for 2010 by 31st May 2011; b for 2011 by 31st May 2012; and c for 2012 by 31st May 2013. 3 In order to calculate whether carbon units are to be credited or debited for a year, the Scottish Ministers must determine whether the total amount of carbon units surrendered in respect of Scotland as a result of the operation of the EU ETS in the relevant period for that year is more or less than the specified amount. 4 If the amount of carbon units surrendered in a year is more than the specified amount, then an amount of carbon units equal to the difference is to be credited to the net Scottish emissions account for that year. 5 If the amount of carbon units surrendered in a year is less than the specified amount, then an amount of carbon units equal to the difference is to be debited from the net Scottish emissions account for that year. 6 In this regulation— “ relevant period ” means— for 2010, the 16 months preceding 1st May 2011; for 2011, the 16 months preceding 1st May 2012; and for 2012, the 16 months preceding 1st May 2013; and “ the specified amount ” means— 23,025,000 for 2010 and 2011; and 24,659,000 for 2012. 8A 1 The Scottish Ministers shall in respect of 2013 calculate whether any carbon unit is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS. 2 The calculation under this regulation must be performed by 30th June 2015. 3 The Scottish Ministers, when carrying out the calculation mentioned in paragraph (1), must determine— a for aviation activities, whether the amount of emissions in respect of Scotland from aviation activities in the relevant period for 2013 is more or less than the aviation cap; and b for other activities, whether the amount of carbon units surrendered in respect of Scotland as a result of the operation of the EU ETS in the relevant period for 2013 is more or less than the fixed installation cap. 4 Where the figure for emissions from aviation activities in respect of Scotland in the 2013 national inventory is— a more than the aviation cap, an amount of carbon units equal to the excess is to be credited to the net Scottish emissions account for 2013; or b less than the aviation cap, an amount of carbon units equal to the shortfall is to be debited from the net Scottish emissions account for 2013. 5 Where the amount of carbon units surrendered in 2013 in respect of other activities is— a more than the fixed installation cap for 2013, an amount of carbon units equal to the excess is to be credited to the net Scottish emissions account for 2013; or b less than the fixed installation cap for 2013, an amount of carbon units equal to the shortfall is to be debited from the net Scottish emissions account for 2013. 6 In this regulation— “2013 national inventory” means the “2013 UK Greenhouse Gas Emissions, Final Figures” as published by the Department of Energy and Climate Change on 3rd February 2015; ... “aviation activity” means an aviation activity listed in Annex I; “aviation cap” means the sum of the domestic aviation cap plus the international aviation cap; “domestic aviation cap” means 443,255; “fixed installation cap” means 16,325,296; “international aviation cap” means 921,758; “other activities” means activities listed in Annex I other than aviation activity; and “relevant period” means for 2013, the 16 months preceding 1st May 2014. 8B 1 The Scottish Ministers shall in respect of 2014 calculate whether any carbon unit is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS. 2 The calculation under this regulation must be performed by 30th June 2016. 3 The Scottish Ministers, when carrying out the calculation mentioned in paragraph (1), must determine— a for aviation activities, whether the amount of emissions in respect of Scotland from aviation activities in the relevant period for 2014 is more or less than the aviation cap; and b for other activities, whether the amount of carbon units surrendered in respect of Scotland as a result of the operation of the EU ETS in the relevant period for 2014 is more or less than the fixed installation cap. 4 Where the amount of emissions in respect of Scotland from aviation activities in ... 2014 is— a more than the aviation cap, an amount of carbon units equal to the excess is to be credited to the net Scottish emissions account for 2014; or b less than the aviation cap, an amount of carbon units equal to the shortfall is to be debited from the net Scottish emissions account for 2014. 5 Where the amount of carbon units surrendered in 2014 in respect of other activities is— a more than the fixed installation cap for 2014, an amount of carbon units equal to the excess is to be credited to the net Scottish emissions account for 2014; or b less than the fixed installation cap for 2014, an amount of carbon units equal to the shortfall is to be debited from the net Scottish emissions account for 2014. 6 In this regulation— “aviation activities” means aviation activities listed in Annex I; “aviation cap” means the sum of the domestic aviation cap plus the international aviation cap; “domestic aviation cap” means 443,255; “fixed installation cap” means 12,356,118; “international aviation cap” means 921,758; “other activities” means activities listed in Annex I other than aviation activities; and “relevant period” means for 2014, the 16 months preceding 1st May 2015. 8C 1 The Scottish Ministers must in respect of 2015 calculate whether an amount of carbon units is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS . 2 The calculation must be performed by 30th June 2017. 3 The Scottish Ministers, when carrying out the calculation, must determine— a whether the amount of emissions in respect of Scotland from aviation activities in 2015 is more or less than the aviation cap; and b whether the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2015 is more or less than the fixed installation cap. 4 If the amount of emissions in respect of Scotland from aviation activities in 2015 is— a more than the aviation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2015; or b less than the aviation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2015. 5 If the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2015 is— a more than the fixed installation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2015; or b less than the fixed installation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2015. 6 In this regulation— “aviation activities” means aviation activities listed in Annex I; “aviation cap” means 1,365,013 tonnes of carbon dioxide equivalent; “fixed installation cap” means 13,029,411 tonnes of carbon dioxide equivalent; “other activities” means activities listed in Annex I other than aviation activities; and “relevant period” means for 2015, the 16 months preceding 1st May 2016. 8D 1 The Scottish Ministers must in respect of 2016 calculate whether an amount of carbon units is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS. 2 The calculation must be performed by 30th June 2018. 3 The Scottish Ministers, when carrying out the calculation, must determine— a whether the amount of emissions in respect of Scotland from aviation activities in 2016 is more or less than the aviation cap; and b whether the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2016 is more or less than the fixed installation cap. 4 If the amount of emissions in respect of Scotland from aviation activities in 2016 is— a more than the aviation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2016; or b less than the aviation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2016. 5 If the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2016 is— a more than the fixed installation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2016; or b less than the fixed installation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2016. 6 In this regulation— “aviation activities” means aviation activities listed in Annex I; “aviation cap” means 1,365,013 tonnes of carbon dioxide equivalent; “fixed installation cap” means 13,707,475 tonnes of carbon dioxide equivalent; “other activities” means activities listed in Annex I other than aviation activities; and “relevant period” means for 2016, the 16 months preceding 1st May 2017. 8E 1 The Scottish Ministers must in respect of 2017 calculate whether an amount of carbon units is to be credited to or debited from the net Scottish emissions account as a result of the operation of the EU ETS. 2 The calculation must be performed by 30 June 2019. 3 The Scottish Ministers, when carrying out the calculation, must determine— a whether the amount of emissions in respect of Scotland from aviation activities in 2017 is more or less than the aviation cap, and b whether the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2017 is more or less than the fixed installation cap. 4 If the amount of emissions in respect of Scotland from aviation activities in 2017 is— a more than the aviation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2017, or b less than the aviation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2017. 5 If the amount of carbon units surrendered in respect of other activities in Scotland as a result of the operation of the EU ETS in the relevant period for 2017 is— a more than the fixed installation cap, an amount of carbon units equal to the excess must be credited to the net Scottish emissions account for 2017, or b less than the fixed installation cap, an amount of carbon units equal to the shortfall must be debited from the net Scottish emissions account for 2017. 6 In this regulation— “aviation activities” means aviation activities listed in Annex I, “aviation cap” means 1,365,013 tonnes of carbon dioxide equivalent , “fixed installation cap” means 15,642,605 tonnes of carbon dioxide equivalent, “other activities” means activities listed in Annex I other than aviation activities, and “relevant period” means for 2017, the 16 months preceding 1 May 2018. Register of transactions 9 1 The Scottish Ministers must maintain a register containing information about the carbon units credited to and debited from the net Scottish emissions account under these Regulations. 2 In relation to carbon units credited under regulation 7, or treated as so credited under regulation 6, the register must contain details of the— a type of units transferred to the Scottish credit account; b date of transfer to the Scottish credit account; c date of any declaration that units are to be credited; d year in respect of which the units are credited; and e date of cancellation. 3 In relation to carbon units to be credited or debited under regulation 8, the register must contain details of the— a date on which the calculation under regulation 8(1) was performed; b date of surrender; c figures used in that calculation; d amount of units credited to or debited from the net Scottish emissions account; and e year in respect of which units are credited or debited. 4 In relation to carbon units to be credited or debited under regulation 8A, the register must contain details of the— a date on which the calculation under regulation 8A(1) was performed; b date of surrender; c figures used in that calculation; and d amount of units credited to or debited from the net Scottish emissions account. 5 In relation to carbon units to be credited or debited under regulation 8B, the register must contain details of the— a date on which the calculation under regulation 8B(1) was performed; b date of surrender; c figures used in that calculation; and d amount of units credited to or debited from the net Scottish emissions account. 6 In relation to carbon units to be credited or debited under regulation 8C, the register must contain details of the— a date on which the calculation under regulation 8C(1) was performed; b date of surrender; c figures used in that calculation; and d amount of units credited to or debited from the net Scottish emissions account. 7 In relation to carbon units to be credited or debited under regulation 8D, the register must contain details of the— a date on which the calculation under regulation 8D(1) was performed; b date of surrender; c figures used in that calculation; and d amount of units credited to or debited from the net Scottish emissions account. 8 In relation to carbon units to be credited or debited under regulation 8E, the register must contain details of the— a date on which the calculation under regulation 8E(1) was performed, b date of surrender, c figures used in that calculation, and d amount of units credited to or debited from the net Scottish emissions account. Delegation of functions 10 The Scottish Ministers may delegate to SEPA the performance of any function conferred on them by these Regulations. STEWART STEVENSON Authorised to sign by the Scottish Ministers St Andrew's House, Edinburgh