The Carbon Border Adjustment Mechanism (Calculation of CBAM Rate and Determination of Carbon Price Relief) Regulations 2026
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Change 1
4 Adjustment to be applied to the reduction of the average ETS price in relation to free allowances
(1) The factor specified for the purposes of Step 2 of the calculation set out in section 149(3) of FA 2026 is the same factor that is set out in Article 16(14) of Commission Delegated Regulation (EU) 2019/331 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council, in relation to the corresponding scheme year. (2) For the purposes of paragraph (1), a “scheme year” has the meaning given in regulation 4 of the UK ETS Order.
4 Adjustment to be applied to the reduction of the average ETS price in relation to free allowances
(1) The factor specified for the purposes of Step 2 of the calculation set out in section 149(3) of FA 2026 is the same factor that is set out in Article 16(14) of Commission Delegated Regulation (EU) 2019/331 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council, in relation to the corresponding scheme year. (2) For the purposes of paragraph (1), a “scheme year” has the meaning given in regulation 4 of the UK ETS Order.
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