ABX AIR, Inc v Environment Agency
[2023] UKFTT 847 (GRC)
Gullivair Limited v Environment Agency
1 November 2023
[2023] UKFTT 936 (GRC)
First-tier Tribunal
An airline, Gullivair, didn't pay its carbon emissions fees on time. They said they sent the paperwork late, but the government didn't get it. The judge said they should have paid on time and that the fine was fair because it's important to follow the rules about carbon emissions.
Key Facts
- •Gullivair Limited appealed a £24,200 penalty imposed by the Environment Agency under the UK Emissions Trading Scheme (UK ETS) for failing to surrender sufficient allowances on time.
- •Gullivair claimed it sent a Letter of Authority (LoA) to the Environment Agency, but the Agency did not receive it.
- •Gullivair argued it followed all instructions and that the Agency could have surrendered the allowances without the LoA.
- •Gullivair initially misunderstood the threshold for inclusion in UKETS, contacting the agency late.
- •The Environment Agency made efforts to help Gullivair comply, providing clear instructions and reminders.
- •Gullivair did not have sufficient allowances in its Account Operator Handling Agent (AOHA) by the deadline.
- •The Environment Agency's evidence regarding the non-receipt of the LoA and lack of allowances was deemed reliable.
Legal Principles
Principles of the UK Emissions Trading Scheme and appeals against penalties for failing to surrender sufficient allowances on time.
[2023] UKFTT 847 (GRC) (ABX Air case)
Proportionality of penalties under Article 1 of the First Protocol to the European Convention on Human Rights (A1P1).
ABX Air v Environment Agency [2023] UKFTT 847 (GRC)
Outcomes
The appeal was dismissed.
Gullivair failed to ensure timely receipt of the LoA and did not have sufficient allowances by the deadline. The penalty was deemed proportionate to maintain the integrity of the UK ETS.