The Greenhouse Gas Emissions Trading Scheme Order 2020

• (a) to the operator of an installation, if the operator holding account for the installation has been closed under paragraph 27 of Schedule 5A;

• (b) to a person who is an aircraft operator in relation to a scheme year, if the person’s aircraft operator holding account has been closed under paragraph 28 of that Schedule;

• (c) in respect of allowances which a transferring operator failed to surrender in a scheme year as a result of an error of the kind referred to in paragraph 10(1) of Schedule 6 (transfer of permits: underreporting discovered after transfer).

• (9) In this article—

• “new operator” and “transferring operator” have the meanings given in paragraph 7(1) of Schedule 6;

• “transfer date” has the meaning given in paragraph 9(6) of that Schedule.

Determination of reportable emissions or aviation emissions by regulator

Installations: failure to submit information under article 27A

60A

• (1) The operator of an installation is liable to a civil penalty where the operator fails to comply (or to comply on time) with the requirements of article 27A.

• (2) The civil penalty is—

• (a) £5,000; and

• (b) a daily penalty at a daily rate of £500 for each day that the operator fails to comply with the requirements of article 27A, beginning with the day on which the initial notice is given, up to a maximum of £45,000.

Aviation: failure to apply or make revised application for emissions monitoring plan

Aviation: failure to comply with condition of emissions monitoring plan

Aviation: failure to monitor aviation emissions

Aviation: failure to report aviation emissions

Failure to comply with notice to return allowances

Failure to comply with enforcement notice ......

Failure to comply with deficit notice

65A

• (1) A person is liable to a civil penalty where the person fails to surrender (or to surrender on time) sufficient allowances, contrary to the requirements of a deficit notice given under article 44A.

• (2) The civil penalty is—

• (a) CP x 1.5 for each allowance not surrendered on or before the deficit surrender date set out in the deficit notice, where CP is the carbon price for the scheme year after the relevant scheme year set out in the notice; and

• (b) a daily penalty at a daily rate of £1,000 for each day that the requirements of the deficit notice have not been complied with, beginning with the day on which the initial notice is given (see article 47(5)).

Failure to comply with information notice

Providing false or misleading information, etc.

Inspection: refusal to allow access to premises

Installation to be treated as ceasing operation: regulator’s notice

10A

• (1) Where the regulator gives a notice under sub-paragraph (2) to the operator of an installation at which all regulated activities authorised by the permit have ceased to be carried out, the installation must be treated as having ceased operation for the purposes of both this Order and the Activity Level Changes Regulation on the last day on which a regulated activity was carried out at the installation.

• (2) A notice under this sub-paragraph is a notice that states that the regulator considers that all regulated activities authorised by the permit have permanently ceased to be carried out at the installation.

• (3) The regulator may give a notice under sub-paragraph (2) if, at any time during which all regulated activities authorised by the permit have ceased to be carried out at an installation, the operator fails to satisfy the regulator (whether in accordance with the cessation condition referred to in paragraph 4(8) or otherwise) that each of the following conditions is met in respect of the installation—

• (a) the operator intends for one or more of the regulated activities authorised by the permit to resume at the installation;

• (b) either—

• (i) the installation is technically capable of resuming those regulated activities without physical changes being made; or

• (ii) the operator intends for the technical capability required for those regulated activities to resume to be restored at the installation.

• (4) To avoid doubt, nothing in this paragraph prevents the regulator from giving a notice under sub-paragraph (2) in circumstances in which the regulator has previously confirmed that the regulator was, at that time, satisfied that the conditions referred to in sub-paragraph (3) were met in respect of the installation.

• (5) The regulator may withdraw a notice under sub-paragraph (2) at any time by giving notice of the withdrawal to the operator.

Surrender of permits

Revocation of permits

Allocation tables for 2021-2025 and 2027-2030 allocation periods

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.

Allocation tables: supplementary

Allocation tables: updates

Allocation tables: publication, etc.

Allocation of allowances

No allocation unless monitoring methodology plan approved

New entrants' reserve

Installations: errors in applications for free allocation, etc.

Free allocation for former hospital or small emitters and ultra-small emitters

Emissions targets for 2026-2030 period

23B

• (1) This paragraph applies where the operator of an installation included in the hospital and small emitter list for 2026-2030 notifies the regulator on or before 30th June 2026 as part of the second stage of an application for free allocation in the 2027-2030 allocation period under Article 4(1a)(b)(i) of the Free Allocation Regulation that—

• (a) the operator wishes the application to proceed because the operator does not wish the installation to be a hospital or small emitter for the scheme years in the 2027-2030 allocation period; and

• (b) the UK ETS authority informs the regulator under Article 15a(4) of that Regulation that the application is valid.

• (2) The regulator must, as soon as reasonably practicable, give a notice (a “conversion notice”) to the operator.

Conversion notices

End of hospital or small emitter status: end of allocation period

End of ultra-small emitter status: voluntary exit of status for 2027-2030 allocation period

7A

• (1) This paragraph applies where the operator of an installation included in the ultra-small emitter list for 2026-2030 notifies the regulator on or before 30th June 2026 as part of the second stage of an application for free allocation in the 2027-2030 allocation period under Article 4(1a)(b)(i) of the Free Allocation Regulation that—

• (a) the operator wishes the application to proceed because the operator does not wish the installation to be an ultra-small emitter for the scheme years in the 2027-2030 allocation period; and

• (b) the UK ETS authority informs the regulator under Article 15a(4) of that Regulation that the application is valid.

• (2) The regulator must, as soon as reasonably practicable, give a notice to the operator stating that—

• (a) the installation is not an ultra-small emitter for the 2027 scheme year;

• (b) the operator must apply for a greenhouse gas emissions permit and comply with the conditions of the permit from 1st January 2027.

End of ultra-small emitter status: publication