This Order, made under the Climate Change Act, establishes a trading scheme for greenhouse gases for purposes of sections 44 and 46 and Schedule 2 of the Act. It also makes provisions for various other matters relative to trading in emission rights such as registration of participants in the Scheme, tradeable allowance criteria, monitoring compliance, appeals and enforcement. The Order applies to direct and indirect emissions from supplies of electricity, gas and fuel by public bodies and undertakings. It defines offences and prescribes penalties for such offences.
The trading scheme is established for seven phases. A participant is required to provide certain information and to keep certain records and the Administrator of the Scheme is empowered to undertake action if participant fails to do so. The Administrator may also request information concerning compliance with this Order. Schedule 1 defines supplies and emissions.