Climate Change Offences

Climate change legislation impacts most UK businesses. The financial and reputational consequences of non-compliance can be significant. The regulators are carrying out more investigations and issuing more penalties. 

We have significant experience of advising on the following climate change regimes:

UK Emissions Trading Scheme

The UK Emissions Trading Scheme (UK ETS) is a market-based mechanism designed to incentivise the reduction of greenhouse gas emissions. It operates by setting a cap on the total amount of emissions allowed within the scheme. Energy-intensive industries are allocated free allowances that allow them to emit a certain quantity of greenhouse gases. If their emissions exceed their allowance, they must purchase additional allowances from other participants.

The Energy Savings Opportunity Scheme

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment scheme for organisations in the UK that employs 250 or more people, or has an annual turnover in excess of £44 million, and an annual balance sheet total in excess of £38 million. Organisations that qualify for ESOS must carry out ESOS assessments every 4 years. These assessments are audits of the energy used by their buildings, industrial processes and transport. The ESOS audit is designed to identify tailored and cost-effective measures to allow participating businesses to save energy and achieve carbon and cost savings.

Climate Change Agreements scheme

The Climate Change Agreements (CCA) scheme is a voluntary scheme in which scheme participants (businesses that operate energy intensive facilities) enter into agreements with the Environment Agency to reduce their energy use or emissions and, in exchange, are entitled to a discount from the Climate Change Levy (CCL). CCL is a tax on the supply of energy to businesses, introduced to encourage energy efficiency.

The Fluorinated Greenhouse Gases regime

The Fluorinated Greenhouse Gases Regulations (the F-Gas regime) apply to anyone who produces, imports, exports or sells F-gas or equipment containing F-gas. Hydrofluorocarbons (HFCs), for example, are commonly used in refrigeration, air-conditioning and heat pump equipment.

We have extensive experience of advising clients during all stages of regulatory enforcement action and at appeal against civil penalties before the First-tier Tribunal and the Upper Tribunal. We’re uniquely well placed to advise clients in relation to regime compliance, steps to take in response to enforcement action, and prospects of success when making representations/bringing appeals.

Experience

• Advising portfolio clients on the introduction of the UK ETS to the energy from waste sector, including carrying out a Change in Law review of Fuel Supply Agreements together with mitigation strategies.
• Supporting the Environmental Services Association (ESA) on its response to the UK ETS Authority on proposals to expand the scheme to include energy from waste, including on what the potential implications of the expansion of the UK ETS might mean for the recycling and waste management sector.
• Advising a leading manufacturer of refrigerated HGV trailers in a challenge to the Environment Agency regarding liability under the F-Gas regime in relation to a proposed civil penalty.
• Advising on numerous appeals in the First-tier Tribunal and Upper Tribunal against
  • penalties and termination of CCAs for non-compliance with the CCA scheme.
  • penalties for non-compliance under ESOS.