The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026
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3 Calculation of the average ETS price
Where Step 1 of the calculation set out in section 149(3) of FA 2026 requires the Treasury to calculate the average price per tonne of specified emissions under the UK Emissions Trading Scheme in the quarter preceding quarter Q (“the average ETS price”), that price is to be determined by— (a) calculating the mean average of all auction clearing prices for UK ETS allowances during the quarter preceding quarter Q, or (b) if no allowances were sold at auction during the quarter preceding quarter Q, calculating the mean average of all auction clearing prices for UK ETS allowances for the most recent quarter in which allowances were sold at auction.
3 Calculation of the average ETS price
Where Step 1 of the calculation set out in section 149(3) of FA 2026 requires the Treasury to calculate the average price per tonne of specified emissions under the UK Emissions Trading Scheme in the quarter preceding quarter Q (“the average ETS price”), that price is to be determined by— (a) calculating the mean average of all auction clearing prices for UK ETS allowances during the quarter preceding quarter Q, or (b) if no allowances were sold at auction during the quarter preceding quarter Q, calculating the mean average of all auction clearing prices for UK ETS allowances for the most recent quarter in which allowances were sold at auction.
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