Climate Action Fund Regulations 2026.

The Regulations establish the Climate Action Fund and provide for its governance by a Board, including rules on procedure, disbursements, member liability, solvency and the creation of a specific GEA Sub-fund. The Regulations are also made for the purposes of implementing Article 219(4) of the Agreement concerning Gibraltar between the European Union, Euratom and the United Kingdom in respect of Gibraltar. The instrument imposes annual greenhouse gas emissions reduction obligations on the Gibraltar Electricity Authority in respect of electricity generating stations owned, controlled or managed by it. The initial scheme year begins on the date the Regulations come into force and ends on 31 December of the same calendar year, while subsequent scheme years run annually until 30 December 2030. The Gibraltar Electricity Authority must reduce carbon emissions by at least 2 percent against 2020 baseline emissions in the initial scheme year, with an additional 2 percent annual reduction in subsequent scheme years. It must calculate emissions using a methodology approved by the Minister, maintain records for at least ten years, submit a monitoring plan, report annually on emissions performance and obtain independent verification of reported emissions. Where the Gibraltar Electricity Authority fails to meet the applicable reduction target, it must contribute to the GEA Sub-fund an amount sufficient to purchase one carbon credit for each tonne of carbon dioxide equivalent exceeding the target, subject to a minimum carbon credit price of £40 unless a higher amount is prescribed. The Regulations allow overachievement to be banked and applied against future excess emissions, but not transferred or traded. Funds paid into the sub-fund must be invested in projects designed to offset the relevant excess emissions, preferably in Gibraltar where suitable projects are available, and the Board must consider environmental integrity, additionality and potential local benefits, including employment, health and biodiversity. The Board must report annually to the Minister on contributions, expenditure, funded projects, estimated or verified carbon dioxide equivalent offsets and the balance of the sub-fund, with the report to be laid before Parliament