The Greenhouse Gas Emissions Trading Scheme Order 2020

• (5) The final annual number of allowances to be allocated in respect of an installation for an eligible scheme year is the sum of the final annual number of allowances to be allocated in respect of all sub-installations of the installation for the scheme year.

• (6) On receipt of the determination (if any) and calculation, the UK ETS authority must as soon as reasonably practicable—

• (a) approve the final annual number of allowances to be allocated in respect of the installation, making any corrections to the calculation (including, in the case of a sub-installation referred to in paragraph 3(1)(b), to the historical activity level and preliminary annual number of allowances) that the UK ETS authority considers appropriate;

• (b) inform the regulator accordingly.

• (7) The regulator must give notice to the operator of the final annual number of allowances approved under sub-paragraph (6).

• (8) For the purpose of the calculations referred to in sub-paragraphs (3) to (5), the number of allowances to be allocated in respect of sub-installations and installations must be expressed as the nearest integer, taking 0.5 as nearest to the previous integer.

• (9) Where the benchmarks for the 2028, 2029 and 2030 scheme years have not been adopted under Article 16(13)(b)(ii) or 18(9)(b)(ii) of the Free Allocation Regulation on or before 30 September 2026—

• (a) the calculation referred to in paragraph 4(2)(a) of the final annual number of allowances to be allocated for any of the 2028, 2029 and 2030 scheme years must be undertaken by the regulator on or after 1st October 2027; and

• (b) where the UK ETS authority approved the final number of allowances to be allocated in respect of the installation for the 2027 scheme year and an ALC adjustment applies to a sub-installation of the installation for the 2027 scheme year, the regulator must—

• (i) make an equivalent adjustment to the final number of allowances to be allocated in respect of that sub-installation for the 2028, 2029 and 2030 scheme years; and

• (ii) reflect this adjustment in the final number of allowances to be allocated in respect of the installation which the sub-installation forms part of.

• (10) Where—

• (a) the regulator has calculated the final annual number of allowances to be allocated in respect of the installation and each sub-installation for any scheme year in the 2027-2030 allocation period under paragraph 4(2)(a);

• (b) the installation has at least one UK CBAM sub-installation within the meaning of Article 2(27) of the Free Allocation Regulation; and

• (c) either—

• (i) a different factor is provided for under Article 16(14) of the Free Allocation Regulation; or

• (ii) the product benchmark or PRODCOM code of the product produced in a sub-installation that is not a UK CBAM sub-installation for the 2027-2030 allocation period is subsequently added to the relevant table in Annex 9 to the Free Allocation Regulation;

the regulator must recalculate the final number of allowances to be allocated in the relevant period in respect of that installation in accordance with paragraph 4(3) or (4), and (5).

• (11) Where paragraph 4(10) applies and an ALC adjustment applies to the UK CBAM sub-installation for the scheme year immediately preceding the relevant period, the regulator must—

• (a) make an equivalent adjustment to the final number of allowances to be allocated in the relevant period for the UK CBAM sub-installation; and

• (b) reflect this adjustment in the final annual number of allowances to be allocated in the relevant period in respect of the installation which that UK CBAM sub-installation forms part of.

• (12) Subject to paragraph 4(13), in paragraph 4(10) and (11), “relevant period” means—

• (a) in the case of paragraph (10)(c)(i)—

• (i) the period beginning with the scheme year for which the factor has changed under Article 16(14) of the Free Allocation Regulation and ending with the 2030 scheme year; or

• (ii) where the scheme year for which the factor has changed is 2030, the 2030 scheme year;

• (b) in the case of paragraph (10)(c)(ii)—

• (i) the period beginning with the scheme year after the scheme year in which the product benchmark or PRODCOM code was added to the relevant table in Annex 9 to the Free Allocation Regulation and ending with the 2030 scheme year; or

• (ii) where the scheme year after the scheme year in which the product benchmark or PRODCOM code was added to the relevant table is 2030, the 2030 scheme year.

• (13) Where paragraph 4(9) applies and either of the following circumstances apply “relevant period” means the 2027 scheme year—

• (a) the scheme year for which the factor has changed under Article 16(14) of the Free Allocation Regulation is 2027; or

• (b) the scheme year after the scheme year in which the product benchmark or PRODCOM code was added to the relevant table in Annex 9 to the Free Allocation Regulation is 2027.

• (14) In paragraph 4(9)(b) and (11) an “ALC adjustment” means an adjustment to free allocation under the Activity Level Changes Regulation approved by the UK ETS authority under Article 6a of that Regulation.

Modifications to Activity Level Changes Regulation

5

• (1) Where an installation to which this Schedule applies becomes an FA installation, the Activity Level Changes Regulation has effect with the following modifications.

• (2) Article 3 is to be read as if—

• (a) in paragraph 1 for “In 2021, this report” there were substituted “In the first eligible scheme year (within the meaning of Schedule 8A to the UK ETS Order), this report”;

• (b) in paragraph 3 for “on or before 30 June in the 2021 scheme year” there were substituted “on or before 31 March in the first eligible scheme year (or, if later, within 3 months after the date on which the final annual number of allowances to be allocated in respect of the installation is approved under paragraph 4(6) of Schedule 8A to the UK ETS Order)”.

Failure to comply with notice to return allowances

64A

• (1) A person is liable to a civil penalty where the person fails to comply (or to comply on time) with the requirements of a notice (the “notice to return allowances”) given under article 34V.

• (2) The civil penalty is—

• (a) £20,000; and

• (b) a daily penalty at a daily rate of £1,000 for each day that the person fails to comply with the requirements of the notice to return allowances, beginning with the day on which the initial notice is given.

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

Failure to comply with information notice

Providing false or misleading information, etc.

Inspection: refusal to allow access to premises

Power to publish UK ETS information

75BA

• (1) The UK ETS authority may publish information held or obtained under UK ETS legislation—

• (a) to ensure the effective operation of the UK ETS;

• (b) to inform the public about the operation of the UK ETS.

• (2) But the UK ETS authority may not publish information under paragraph (1) that the UK ETS authority considers may be commercially sensitive unless the UK ETS authority considers that the publication of the information is proportionate to what is sought to be achieved by it.

• (3) In this article, “UK ETS legislation” has the meaning given in article 75B(4).

National security

Crown application

Transitional provisions

38A

Annex 5 is to be read as if in Table 1 in the eighth row (scrubbing (urea))—

• (a) in the entry in the column headed “net calorific value” for “1” there were substituted “n.a.”;

• (b) in the entry in the column headed “oxidation factor” for “1” there were substituted “n.a.”;

• (c) in the entry in the column headed “conversion factor” for “n.a.” there were substituted “1”.

38B

• (1) Annex 6 is to be read as if in section 3 for Table 6 there were substituted—

Gas	Global warming potential
N₂O	265 t CO2(e) /t N₂O
CF₄	6 630 t CO2(e)/t CF₄
C₂F₆	11 100 t CO2(e)/t C₂F₆

• (2) The modifications made by sub-paragraph (1) have effect in relation to the 2023 and subsequent scheme years.

PART 4 — Publication of information from registry

Information about accounts: operator and aircraft operator holding accounts and trading accounts

31

• (1) The UK ETS authority must publish information about each of the following accounts (including closed accounts)—

• (a) operator holding accounts;

• (b) aircraft operator holding accounts;

• (c) trading accounts.

• (2) The information is—

• (a) the account holder’s name;

• (b) the type of account;

• (c) whether the account is open or closed;

• (d) if the account is an operator holding account, the information referred to in paragraph 32;

• (e) if the account is an aircraft operator holding account, the information referred to in paragraph 33;

• (f) if the account is a trading account, the account holder’s address.

• (3) The UK ETS authority must—

• (a) publish the information as soon as reasonably practicable after this paragraph comes into force;

• (b) publish updated information from time to time and in any event at least once a year as soon as reasonably practicable after 1st May.

• (4) This paragraph is subject to article 75C (national security).

Information about accounts: operator holding accounts

32

• (1) In the case of an operator holding account, the information is—

• (a) the identifier used in the registry for the installation to which the account relates;

• (b) the regulator for the installation;

• (c) the number of the installation’s greenhouse gas emissions permit;

• (d) the first scheme year for which the installation’s reportable emissions are recorded in the account;

• (e) if the account is closed, the last scheme year for which the installation’s reportable emissions are recorded in the account;

• (f) the number of allowances allocated free of charge in respect of the installation for each scheme year;

• (g) the installation’s reportable emissions in each scheme year, and the installation’s total reportable emissions in the trading period, recorded in the account as at the relevant date;

• (h) the total number of allowances transferred from the account to the surrender account (excluding transfers that have subsequently been reversed) as at the relevant date;

• (i) the code (known as the “static compliance code”) generated in the registry from the information recorded in the account as at the relevant date, and the key to that code, indicating which one of the statuses referred to in sub-paragraph (2) applies.

• (2) The statuses are that—

• (a) a regulated activity did not begin to be carried out at the installation by the end of the scheme year preceding the relevant date;

• (b) paragraph (a) does not apply and the installation’s reportable emissions in the scheme year preceding the relevant date are not recorded in the account as at the relevant date;

• (c) neither paragraph (a) nor (b) applies and the total number of allowances referred to in sub-paragraph (1)(h) is greater than or equal to the installation’s total reportable emissions in the trading period recorded in the account as at the relevant date;

• (d) neither paragraph (a) nor (b) applies and the total number of allowances referred to in sub-paragraph (1)(h) is less than the installation’s total reportable emissions in the trading period recorded in the account as at the relevant date.

• (3) In this paragraph, “relevant date” means the 1st May preceding the date of publication of the information or updated information.

Information about accounts: aircraft operator holding accounts

33

• (1) In the case of an aircraft operator holding account, the information is—

• (a) the account holder’s Eurocontrol Central Route Charges Office identification number;

• (b) the regulator of the account holder;

• (c) the number of the account holder’s emissions monitoring plan;

• (d) the first scheme year for which the account holder’s aviation emissions are recorded in the account;

• (e) if the account is closed, the last scheme year for which the account holder’s aviation emissions are recorded in the account;

• (f) the number of allowances allocated free of charge to the account holder for each scheme year;

• (g) the account holder’s aviation emissions in each scheme year, and the account holder’s total aviation emissions in the trading period, recorded in the account as at the relevant date;

• (h) the total number of allowances transferred from the account to the surrender account (excluding transfers that have subsequently been reversed) as at the relevant date;

• (i) the code (known as the “static compliance code”) generated in the registry from the information recorded in the account as at the relevant date, and the key to that code, indicating which one of the statuses referred to in sub-paragraph (2) applies.

• (2) The statuses are that—

• (a) the account holder is not an aircraft operator in relation to the scheme year preceding the relevant date;

• (b) paragraph (a) does not apply and the account holder’s aviation emissions in the scheme year preceding the relevant date are not recorded in the account as at the relevant date;

• (c) neither paragraph (a) nor (b) applies and the total number of allowances referred to in sub-paragraph (1)(h) is greater than or equal to the account holder’s total aviation emissions in the trading period recorded in the account as at the relevant date;

• (d) neither paragraph (a) nor (b) applies and the total number of allowances referred to in sub-paragraph (1)(h) is less than the account holder’s total aviation emissions in the trading period recorded in the account as at the relevant date.

• (3) In this paragraph, “relevant date” means the 1st May preceding the date of publication of the information or updated information.

Information about transfers of allowances

34

• (1) The UK ETS authority must publish the information referred to in sub-paragraph (1A) about each completed transfer of allowances from one account to another (other than a transfer from a central account to another central account).

• (1A) The information is—

• (a) the name of the account holder, type of account and unique account identifier of the account from which the allowances are transferred;

• (b) the name of the account holder, type of account and unique account identifier of the account to which the allowances are transferred;

• (c) the number of allowances transferred;

• (d) which one of the following categories the transfer falls into—

• (i) a transfer from the allocation account (free allocation under Part 4A);

• (ii) the reversal of a transfer from the allocation account (see paragraph 22(6));

• (iii) the return of allowances to which a person is not entitled (as set out in article 34S(3) or 34T(3)) in accordance with a notice under article 34U or 34V or returned voluntarily without the need for such a notice to be given;

• (iv) a transfer to the auction delivery account;

• (v) the return of allowances transferred in error under the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (see regulation 48 of those Regulations);

• (vi) a transfer of allowances following the grant of an application to transfer a greenhouse gas emissions permit (see paragraph 12);

• (vii) a transfer to the deletion account (see paragraph 23);

• (viii) the reversal of a transfer to the deletion account (see paragraph 22(2));

• (ix) a transfer to the surrender account (see paragraph 24);

• (x) the reversal of a transfer to the surrender account (see paragraph 22(3));

• (xi) a transfer of allowances from an account to be closed (see paragraph 30);

• (xii) any other transfer of allowances;

• (e) the date and time when the transfer completed;

• (f) the reference for the transfer used in the registry.

• (1B) The unique account identifier of an account that is required to be published under sub-paragraph (1A) must not be the account number or an identifier from which the account number can be derived.

• (2) Information about transfers completing in the period beginning with 1st January 2021 and ending with 30th April 2022 must be published as soon as reasonably practicable after 30th April 2025.

• (3) Information about transfers completing in the 12-month period ending with 30th April 2023, and in each subsequent 12-month period ending with 30th April, must be published as soon as reasonably practicable after 3 years have elapsed since the end of the 12-month period.

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) This paragraph is subject to article 75C (national security).

Publication of emissions targets and reportable emissions

22A

• (1) The regulator must inform the UK ETS authority of—

• (a) emissions targets (including any revised emissions targets) calculated by the regulator;

• (b) the reportable emissions in each scheme year of every installation that is a hospital or small emitter for the scheme year that are reported to the regulator.

• (2) The UK ETS authority must publish the information referred to in sub-paragraph (1) as soon as reasonably practicable after receiving it.

• (3) This paragraph is subject to article 75C (national security).

End of hospital or small emitter status: voluntary exit of status for 2024 and 2025 scheme years

23A

• (1) Where the operator of an installation included in the hospital and small emitter list for 2021-2025 wishes that the installation should not be a hospital or small emitter for the 2024 and 2025 scheme years, the operator may request the regulator to give a notice (a “conversion notice”) to the operator of the installation.

• (2) If the regulator receives a request on or before 31st March 2023, the regulator must, as soon as reasonably practicable, give a conversion notice to the operator of the installation.

• (3) The regulator must refuse a request received after 31st March 2023.

Conversion notices

End of hospital or small emitter status: ceasing to meet criteria: publication

Flexible reserve

23A

• (1) The flexible reserve is a reserve of allowances for the trading period from which allowances may be allocated until the reserve is exhausted.

• (2) The flexible reserve consists of the following—

• (a) allowances equal to the sum of the amounts set out in paragraphs (i) and (ii), if the sum is greater than zero—

• (i) 28,081,237;

• (ii) the sum of A and C minus 53,294,847, where—

• (aa) A is 240,342,255 (industry cap for 2021-2025 allocation period) minus B;

• (bb) B is the final annual number of allowances approved by the UK ETS authority under Article 16b of the Free Allocation Regulation (final allocation at installation level for incumbent installations) to be allocated in respect of all installations for all scheme years in the 2021-2025 allocation period;

• (cc) C is equal to the number of B that are not allocated or, if allocated, subsequently returned;

• (b) allowances equal to the sum of D and F, where—

• (i) D is—

• (aa) 121,169,970 (industry cap for 2026-2030 ...) minus E; or

• (bb) if E is greater than 121,169,970, zero;

• (ii) E is the final annual number of allowances approved by the UK ETS authority under Article 16b of the Free Allocation Regulation or Part 2 of the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 to be allocated in respect of all installations for all scheme years in the 2026 allocation period and the 2027-2030 allocation period;

• (iii) F is equal to the number of E that are not allocated or, if allocated, subsequently returned;

• (c) allowances equal to the number of allowances representing aviation free allocation entitlement (within the meaning of Chapter 2 of Part 4A) approved by the UK ETS authority but not allocated or, if allocated, subsequently returned.

• (3) For the purposes of paragraph (2)—

• (a) any increase approved by the UK ETS authority under article 20(5) of the Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2023 (free allocation for 2024 and 2025 scheme years: lime and malt extract) that in accordance with article 34B(3A) of this Order was required to be added to the amount included in column A of the allocation table for the 2021-2025 allocation period must be treated as if approved under Article 16b of the Free Allocation Regulation;

• (b) a reference to allowances that are returned is a reference to allowances transferred or returned in accordance with a notice under article 34U or 34V or, in the case of other allowances to which a person is not entitled (as set out in article 34S(3) or 34T(3)), returned voluntarily without the need for such a notice to be given;

• (c) E is recalculated as soon as reasonably practicable after the UK ETS authority has approved the recalculation under Article 16b(6) of the Free Allocation Regulation of the final number of allowances to be allocated for a scheme year in the 2027-2030 allocation period, and the flexible reserve is updated on the basis of this recalculated E.

• (4) Allowances from the flexible reserve may be used—

• (a) for free allocation in respect of incumbent installations (within the meaning of the Free Allocation Regulation) or in accordance with article 8 of the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025;

• (b) for allocation under the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 or any other regulations made under section 96 of the Finance Act 2020.

Deficit notices

44A

• (1) This article applies where—

• (a) the operator of an installation fails to surrender allowances equal to the installation’s reportable emissions in a scheme year (the “relevant scheme year”), contrary to—

• (i) article 27;

• (ii) the requirements of a surrender notice under paragraph 11 of Schedule 6 (see paragraph 11(4)(b)(iii));

• (iii) the requirements of a revocation notice under paragraph 12 of that Schedule (see paragraph 12(5)(b)(iii));

• (b) a person who is an aircraft operator in relation to a scheme year (the “relevant scheme year”) fails to surrender allowances equal to the person’s aviation emissions in that year, contrary to article 34.

• (2) The regulator may give a notice (a “deficit notice”) to the operator of the installation or to the person.

• (3) The deficit notice must set out—

• (a) the relevant scheme year and the installation’s reportable emissions, or the person’s aviation emissions, in that year;

• (b) the number of allowances (if any) surrendered in compliance with article 27, the requirements of a surrender or revocation notice or article 34 (including any surrendered after the date by which allowances were required to be surrendered);

• (c) the number of allowances representing the difference (the “deficit”) between allowances equal to the installation’s reportable emissions, or the person’s aviation emissions, in the relevant scheme year and the number referred to in sub-paragraph (b);

• (d) the date (the “deficit surrender date”) on or before which the person to whom the notice is given must surrender allowances equal to the deficit;

• (e) information about rights of appeal.

• (4) The person to whom a deficit notice is given must surrender allowances equal to the deficit on or before the deficit surrender date.

• (5) The regulator may withdraw a deficit notice at any time by giving notice of the withdrawal to the person to whom the deficit notice is given.

• (6) A deficit notice may be given in respect of a failure to surrender allowances that arises before as well as after this article comes into force.

• (7) In the case of a transfer of a permit under paragraph 9 of Schedule 6 (other than a partial transfer)—

• (a) after the transfer date, a deficit notice may be given to the new operator only, including in respect of a failure to surrender allowances arising before the transfer date;

• (b) where a deficit notice in respect of a failure to surrender allowances is given to the transferring operator before the transfer date and has not been complied with, a new deficit notice may be given to the new operator in respect of the same failure provided that the original notice is first withdrawn.

• (8) A deficit notice may not be given—

• (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