Citation, commencement and interpretation

1.-(1) This Order may be cited as the Climate Change (Limit on Carbon Units) (Scotland) Order 2011 and comes into force on 31st December 2011.

(2) In this Order "the 2010 Regulations" means the Carbon Accounting Scheme (Scotland) Regulations 2010(4).

Limit on the net amount of carbon units for the period 2013-2017

2. The net amount of carbon units that may be credited to the net Scottish emissions account for the period 2013-2017 is specified in the Schedule.

Carbon units that do not count towards the limit

3.-(1) The following carbon units do not count towards the limit under article 2-

(a)EU ETS carbon units credited to or debited from the net Scottish emissions account in accordance with the 2010 Regulations; and

(b)European Union allowances which are acquired by the administrator of a trading scheme established in accordance with Part 3 (trading schemes) of the Climate Change Act 2008(5).

(2) In paragraph (1)-

(a)"EU ETS" has the same meaning given by regulation 2 of the 2010 Regulations; and

(b)"European Union allowance" has the meaning given by regulation 4(3) (carbon units) of the 2010 Regulations.

Article 2

SCHEDULENet amount of carbon units that may be credited to the net Scottish emissions account

EXPLANATORY NOTE

(This note is not part of the Order)

This Order sets a limit in accordance with section 21 of the Climate Change (Scotland) Act 2009 (the "2009 Act") on the net amount of carbon units which may be credited to the net Scottish emissions account ("NSEA"), and makes further provision in that respect.

The Scottish Ministers requested advice from the relevant body (the UK Committee on Climate Change (UKCCC)) as required by section 23(1) of the 2009 Act. The UKCCC provided advice dated 1st July 2011 which is available at http://hmccc.s3.amazonaws.com/CCC%20letter%20to%20Stewart%20Stevenson%20-%20targets%20and%20credit%20advice%201%20July%202011.pdf.

Article 2 provides that the net amount of carbon units that may be credited to the NSEA for the years in the period 2013-2017 are as specified in the Schedule.

Article 3 specifies the carbon units that do not count towards that limit, namely EU ETS units credited to and debited from the NSEA under the Carbon Accounting Scheme (Scotland) Regulations 2010 (S.S.I. 2010/216) as a result of the operation of the EU Emissions Trading Scheme, and European Union allowances acquired by the administrator of a trading scheme (a "Part 3 scheme") that operates under Part 3 of the Climate Change Act 2008.

A Part 3 scheme operates by-

(a)limiting, or encouraging the limitation, of activities which consist of the emission of greenhouse gases or that cause or contribute to such emissions, or

(b)encouraging activities that consist of, or cause or contribute to, reductions in greenhouse gas emissions or removal of greenhouse gases from the atmosphere.

A Regulatory Impact Assessment has not been produced in relation to this Order as it has no direct impact on businesses, charities or the voluntary sector.