CCS targets to stay ‘locked in’

The director of a platform that allows dealers and importers to trade carbon credits for the clean car standard (CCS) is not expecting any major changes to the scheme until after 2027.

Andrew Cassin, who runs CO2X, also expects the status quo of only being able to transfer credits to accounts of the same type – that is, new-to-new and used-to-used – will remain.

The Ministry of Transport (MoT) is due to deliver advice to the government this month about possible amendments to the emissions targets for imported light vehicles under the CCS.

New and used light vehicles earn credits or attract charges at the time of import depending on whether they’re above or below the government’s carbon dioxide (CO2) emissions targets.

Simeon Brown, Minister of Transport, ordered a review of the CCS this year amid industry concerns the CO2 goals locked into legislation until 2027 decrease too steeply. The targets are set to next change on January 1, 2025.

Cassin, pictured, set up CO2X to allow importers to sell surplus credits or buy some to offset charges. He does not anticipate any significant alterations to the government scheme in the short term.

“I expect it will be 2027 and beyond that changes occur, and the present targets for 2025 and 2026 will remain locked in,” he told Autofile Online.

“At the moment used credits can only be transferred to other used accounts, and likewise for new, you can’t cross transfer. 

“If the government decided to open it up between new and used, that could change pricing, but I don’t think it will do that.”

He adds the government needs to be seen to be doing something to reduce CO2 emissions from the light-vehicle fleet, especially as other countries are implementing systems similar to the CCS.

“The pressure will be on the new-vehicle sector to bring in cleaner cars, so I think the government will maintain a separation between new and used,” says Cassin.