101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 119 Environment: Reporting Co2 emissions Purpose This notice provides manufacturers with information about regulating and reporting CO2 emissions of new cars and vans registered in the UK if we leave the EU in March 2019 with no agreement in place. Before 29 March 2019 Emissions of CO2 from new passenger cars and light commercial vehicles registered in Europe each year (registrations) are governed by Regulation (EC) 443/2009 and Regulation (EU) 510/2011 respectively. These set:  mandatory annual fleet CO2 emissions targets for new cars and vans registered in the EU, Iceland, Liechtenstein and Norway  specific CO2 emissions targets for each manufacturer’s fleet EU countries are required to record information about new vehicle registrations within their territories and report it to the European Environment Agency by 28 February each year. By 30 June each year, the European Commission publishes provisional data on the previous year’s EU-wide registrations for each manufacturer, who then have 3 months to report any mistakes to the Commission. By 31 October, the European Commission publishes the final data and imposes fines on manufacturers if they have not met their targets. Known as ‘excess emissions premiums’, these fines payable by manufacturers are considered part of the general budget of the EU. Manufacturers currently liaise directly with the European Commission on matters concerning the administration of regulations. This includes working with European Commission officials when:  finalising annual data  applying for flexibility mechanisms within the regulations, such as the pooling of registrations, applying for derogations from the EU-wide CO2 target, or applying for eco- innovation credits  ‘excess emissions premiums’ have been levied After 29 March 2019 if there’s no deal In a no deal scenario, new vehicle registrations in the UK would cease to fall under the scope of EU regulations 443/2009 and 510/2011. EU regulations 443/2009 and 510/2011 would be brought into UK legislation. The Department for Transport (DfT) would lay a statutory instrument to correct for ‘deficiencies’ (areas that no longer work as originally intended) within a revised text of both regulations. Deficiencies may include, but are not limited to:  formulae that set specific CO2 targets in order to account for UK-only regulations  derogation thresholds to account for the size of the UK market rather than the EU  detailing how fines would be levied and the change from euros to pounds sterling The UK would ensure continuity to minimise the additional requirements placed on industry and would ensure that the UK’s commitment to maintaining regulations that are at least as ambitious as current arrangements is met. Detail on the arrangements to maintain current environmental protections would be subject to stakeholder engagement and Parliamentary approval. What you would need to do DfT would take over the functions that the European Commission previously exercised regarding the application and enforcement of CO2 standards for UK-registered cars and vans. This would include the following. Data / targets The UK would no longer report its new vehicle registrations data to the European Environment Agency. Manufacturers will be set UK-specific targets which will aim to keep pace with EU targets, on the basis of their UK vehicle registrations only. Compliance would be monitored and enforced by the Secretary of State for Transport. The Secretary of State for Transport would record and verify new UK registrations and notify manufacturers of their provisional compliance data.