Alphasteel Limited, which carries out steel production at Corporation Road, Newport, appealed pursuant to reg. 32(3)(e) of the Greenhouse Gas Emissions Trading Scheme Regulations 2005 (“the 2005 Regulations”) against a civil penalty notice dated 6 December 2006 served by the Environment Agency because Alphasteel failed to comply with a condition imposed pursuant to reg. 10(3) of the 2005 Regulations. This required Alphasteel to surrender allowances equal to the annual reportable emissions from its installation by the end of April 2006.
The 2005 Regulations implement Directive 2003/87/EC establishing a
scheme for greenhouse gas emission allowance trading within the European Community. The scheme is the largest multi-country, multi-sector greenhouse gas emission trading scheme world-wide.
This is believed to be the first ever appeal in the UK (or indeed in Europe) against such a civil penalty notice.
An appeal hearing took place in the summer of 2007 and on 6 March 2008 the Welsh Ministers issued a decision affirming the notice and requiring Alphasteel to pay the penalty of £564,599.93 plus interest.
James Maurici appeared for the Environment Agency.