The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025
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Change 1
20 Article 34AA inserted
After article 34A insert— Allocation table for 2026 allocation period 34AA. (1) The UK ETS authority must compile an allocation table for the 2026 allocation period. (2) The allocation table must contain an entry for each relevant installation. (3) For the purpose of paragraph (2), an installation is a “relevant” installation if— (a) the installation is a type 1 2026 incumbent; (b) in the case of an installation that is a type 2 2026 incumbent, an application for free allocation in the 2027-2030 allocation period is made in respect of the installation under Article 4 of the Free Allocation Regulation that the UK ETS authority subsequently informs the regulator is valid under article 7(9) of the 2025 Order; or (c) an application for free allocation in the 2026 allocation period is made in respect of the installation under Article 5(1)(b) of the Free Allocation Regulation that the UK ETS authority subsequently informs the regulator is valid. (4) But an installation referred to in paragraph (3)(a) or (b) is not a “relevant” installation if— (a) the installation ceases operation on or before 31st December 2025; or (b) the installation’s permit is revoked under paragraph 12 of Schedule 6 on or before that date. (5) The entry for an installation must set out— (a) the installation identifier used in the registry; (b) the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year, in 3 columns as follows— (i) column A (standard free allocation); (ii) column B (new entrants’ reserve); (iii) column C (total). (6) Where, in the case of an installation that is a type 1 2026 incumbent, the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year has not, at the date on which the allocation table is compiled, been approved under article 6 of the 2025 Order because the question of whether any adjustment to free allocation under the Activity Level Changes Regulation is required in consequence of the 2025 ALC obligation has not yet been considered, the entry for the installation must set out— (a) the final annual number of allowances to be allocated in respect of the installation for the 2025 scheme year that would have been approved under article 6 of the 2025 Order if, in the definition of “ALC adjustment” in paragraph (9) of that article, “up to and including activity levels in 2024” were omitted; (b) that the figure referred to in sub-paragraph (a) is provisional. (7) If the entry for an installation in the allocation table includes a provisional figure under paragraph (6), where, after the date on which the allocation table is compiled, any adjustment to free allocation that might be required under the Activity Level Changes Regulation in consequence of the 2025 ALC obligation falls to be considered— (a) article 6 of the 2025 Order applies without the modification set out in paragraph (6) so as to require the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year to be calculated and approved for the purpose of inclusion in the entry for the installation in any updated allocation table in accordance with article 34C(1)(k) without the need to set out that the figure is provisional; (b) the Activity Level Changes Regulation must be read as not requiring any adjustment to free allocation for the 2026 scheme year to be calculated or approved in consequence of the 2025 ALC obligation. (8) In this article— “2025 ALC obligation” means the obligation in Article 3 of the Activity Level Changes Regulation to report on 2024 activity levels on or before 31st March 2025; “2025 Order” means the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025; “type 1 2026 incumbent” and “type 2 2026 incumbent” have the same meanings as in Part 2 of the 2025 Order. .
20 Article 34AA inserted
After article 34A insert— Allocation table for 2026 allocation period 34AA. (1) The UK ETS authority must compile an allocation table for the 2026 allocation period. (2) The allocation table must contain an entry for each relevant installation. (3) For the purpose of paragraph (2), an installation is a “relevant” installation if— (a) the installation is a type 1 2026 incumbent; (b) in the case of an installation that is a type 2 2026 incumbent, an application for free allocation in the 2027-2030 allocation period is made in respect of the installation under Article 4 of the Free Allocation Regulation that the UK ETS authority subsequently informs the regulator is valid under article 7(9) of the 2025 Order; or (c) an application for free allocation in the 2026 allocation period is made in respect of the installation under Article 5(1)(b) of the Free Allocation Regulation that the UK ETS authority subsequently informs the regulator is valid. (4) But an installation referred to in paragraph (3)(a) or (b) is not a “relevant” installation if— (a) the installation ceases operation on or before 31st December 2025; or (b) the installation’s permit is revoked under paragraph 12 of Schedule 6 on or before that date. (5) The entry for an installation must set out— (a) the installation identifier used in the registry; (b) the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year, in 3 columns as follows— (i) column A (standard free allocation); (ii) column B (new entrants’ reserve); (iii) column C (total). (6) Where, in the case of an installation that is a type 1 2026 incumbent, the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year has not, at the date on which the allocation table is compiled, been approved under article 6 of the 2025 Order because the question of whether any adjustment to free allocation under the Activity Level Changes Regulation is required in consequence of the 2025 ALC obligation has not yet been considered, the entry for the installation must set out— (a) the final annual number of allowances to be allocated in respect of the installation for the 2025 scheme year that would have been approved under article 6 of the 2025 Order if, in the definition of “ALC adjustment” in paragraph (9) of that article, “up to and including activity levels in 2024” were omitted; (b) that the figure referred to in sub-paragraph (a) is provisional. (7) If the entry for an installation in the allocation table includes a provisional figure under paragraph (6), where, after the date on which the allocation table is compiled, any adjustment to free allocation that might be required under the Activity Level Changes Regulation in consequence of the 2025 ALC obligation falls to be considered— (a) article 6 of the 2025 Order applies without the modification set out in paragraph (6) so as to require the final annual number of allowances to be allocated in respect of the installation for the 2026 scheme year to be calculated and approved for the purpose of inclusion in the entry for the installation in any updated allocation table in accordance with article 34C(1)(k) without the need to set out that the figure is provisional; (b) the Activity Level Changes Regulation must be read as not requiring any adjustment to free allocation for the 2026 scheme year to be calculated or approved in consequence of the 2025 ALC obligation. (8) In this article— “2025 ALC obligation” means the obligation in Article 3 of the Activity Level Changes Regulation to report on 2024 activity levels on or before 31st March 2025; “2025 Order” means the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025; “type 1 2026 incumbent” and “type 2 2026 incumbent” have the same meanings as in Part 2 of the 2025 Order. .
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