delete The Vehicle Emissions Trading Schemes (Amendment) Order 2024
This Order amends the Vehicle Emissions Trading Schemes Order 2023, making technical changes to the UK's vehicle CO2 emissions trading regime. Key amendments include: adding definitions for UN Regulation No 154 and Fuel Cell Vehicles/Hybrid Vehicles; removing 'Subject to paragraph (3)' conditions from articles 19 and 51; changing CRTS and VRTS allowance calculations from 'allocated allowances' to actual registered vehicle counts; adjusting emission factors from 1.375 to 1.387 in Schedules 3 and 7; adding Northern Ireland enforcement provisions; and revoking certain EU regulations (1014/2010, 293/2012, 63/2011, 114/2013, 725/2011, 427/2014, and articles of 2019/631) in relation to Northern Ireland while maintaining specific emissions obligations for old scheme years through to 2024.
Emissions trading schemes create complex market distortions, compliance burdens, and administrative costs that disproportionately harm smaller manufacturers while enriching larger players and consultants who navigate the trading system. The shift from allocated allowances to registered vehicle counts does not cure the fundamental problem: a cap-and-trade system that picks winners and losers based on political calculation rather than market efficiency. Fuel cell vehicle exemptions create further distortions, privileging certain technologies over others through regulatory fiat. These schemes were inherited from EU law and retained without sufficient scrutiny of whether a more free-market approach to vehicle emissions—such as fuel economy standards or simply allowing price signals to guide consumer choice—would achieve better environmental outcomes at lower economic cost. The UK's Industrial Revolution was built on coal without emissions trading, and the corn laws were repealed without regulatory compensation schemes for affected industries.