The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2024

Schedule 4 amended (Monitoring and Reporting Regulation 2018)

29.—(1) Schedule 4 is amended as follows.

Paragraph 38 amended (Annex 4: activity-specific monitoring methodologies related to installations (Article 20(2))

(2) After paragraph 38(e) insert—

“(f)after section 23 there were inserted—

“24.  UPSTREAM GHG REMOVAL AS LISTED IN SCHEDULE 2 TO THE GREENHOUSE GAS EMISSIONS TRADING SCHEME ORDER 2020

A.  Scope

The operator shall monitor and report all CO₂ emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) that are released in a combustion process or as vented emissions without a combustion process.

Where emissions are released in a combustion process, the scope is as set out in section 1 of this Annex. Where emissions are released as vented emissions without a combustion process, the operator shall include at least vents and unlit flares.

B.  Specific monitoring rules

Where emissions are released in a combustion process, monitoring shall be carried out in accordance with section 1 of this Annex.

Where emissions are released as vented emissions without a combustion process, if a measurement-based methodology is used, Annex 8 is to be read as if in section 1 in Table 1 (tiers for CEMS (maximum permissible uncertainty for each tier)) for the first row there were substituted:

Where emissions are released as vented emissions without a combustion process, the operator may choose to apply a calculation-based methodology whereby:

(a)vented emissions released at a vent or unlit flare are to be treated as a “source stream” for the purposes of this Regulation and monitored accordingly;

(b)venting is to be treated as the process that causes vented emissions;

(c)emissions are to be determined by multiplying the activity data related to vented emissions, expressed as tonnes or normal cubic metres, by the corresponding emission factor, expressed as t CO₂/t or t CO₂/Nm³.

Where the methodology referred to in the preceding paragraph is applied, for the purposes of that methodology:

(a)Article 3 is to be read as if in point (13) (definition of “emission factor”) “assuming complete oxidation for combustion and complete conversion for all other chemical reactions” were omitted;

(b)Article 27 is to be read as if:

(i)paragraph 1(b) were omitted;

(ii)paragraph 2 were omitted;

(c)Article 30 is to be read as if in paragraph 2 in the first subparagraph the reference to fuel included a reference to vented emissions;

(d)Article 31 is to be read as if in paragraph 1(e) for “batches of the same fuel or material” there were substituted “vented emissions”;

(e)Article 32 is to be read as if:

(i)in paragraph 2 the reference to fuels included a reference to vented emissions;

(ii)in paragraph 3 for “delivery period or batch of fuel or material” there were substituted “period of release of vented emissions”;

(f)Article 33 is to be read as if:

(i)in paragraph 1:

(aa)in the first subparagraph for “each fuel or material” there were substituted “vented emissions”;

(bb)in the second subparagraph for “batch or delivery period” there were substituted “period of release of vented emissions”;

(cc)in the second subparagraph for “the respective fuel or material” there were substituted “vented emissions”;

(ii)in paragraph 2:

(aa)for “the respective fuel or material” there were substituted “vented emissions”;

(bb)for “the fuel or material” there were substituted “the vented emissions”;

(cc)for “that specific fuel or material” there were substituted “those vented emissions”;

(g)Article 35 is to be read as if:

(i)in paragraph 1 for “relevant fuels or materials” there were substituted “vented emissions”;

(ii)in paragraph 2 in the first subparagraph in point (a):

(aa)for “the respective fuels or materials” there were substituted “vented emissions”;

(bb)for “the respective fuel or material” there were substituted “vented emissions”;

(cc)for “the relevant fuel or material” there were substituted “vented emissions”;

(iii)in paragraph 2 in the second subparagraph for “Where an installation operates for part of the year only, or where fuels or materials are delivered in batches that are consumed over more than one calendar year” there were substituted “Where vented emissions are not released continuously”;

(h)Article 36 is to be read as if after paragraph 3 there were inserted:

“4.  Emission factors of vented emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) shall be expressed as t CO₂/t or t CO₂/Nm³.”;

(i)Annex 2 is to be read as if:

(i)in section 1 in Table 1 (tiers for activity data (maximum permissible uncertainty for each tier)) after the last row there were inserted:

(ii)after section 4 there were inserted:

“5.  DEFINITION OF TIERS FOR EMISSION FACTORS FOR VENTED EMISSIONS FROM UPSTREAM GHG REMOVAL

Operators shall monitor vented CO₂ emissions from upstream GHG removal (as defined in paragraph 3(6A) of Schedule 2 to the 2020 Order) using the tier definitions for emission factors laid down in this section.

Tier 1: The operator shall derive emission factors for vented emissions based on a proxy agreed with the regulator, in combination with an empirical correlation as determined at least once per year in accordance with Articles 32 to 35.

The operator shall ensure that the correlation satisfies the requirements of good engineering practice and that it is applied only to values of the proxy which fall into the range for which it was established.

Tier 2: The operator shall apply one of the following:

(a)determination of the emission factor in accordance with the relevant provisions of Articles 32 to 35;

(b)the empirical correlation as specified for Tier 1, where the operator demonstrates to the satisfaction of the regulator that the uncertainty of the empirical correlation does not exceed 1/3 of the uncertainty value to which the operator has to adhere with regard to the activity data determination of the vented emissions.”;

(j)Annex 5 is to be read as if in Table 1 (minimum tiers to be applied for calculation-based methodologies in the case of category A installations, etc.) after the last row there were inserted:

(k)Annex 7 (minimum frequency of analyses) is to be read as if in the table after the last row there were inserted: