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The Greenhouse Gas Emissions Trading Scheme Order 2020

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[F1Calculation and approval of final allocationU.K.

This adran has no associated Memorandwm Esboniadol

4.—(1) This paragraph applies where—

(a)either—

(i)the installation’s hospital or small emitter permit is converted into a greenhouse gas emissions permit; or

(ii)a greenhouse gas emissions permit is issued for the installation; F2...

(b)a monitoring methodology plan is approved in relation to the installation under Article 8 of the Free Allocation Regulation [F3; and]

[F4(c)the operator submits to the regulator either—

(i)a report on every sub-installation referred to in paragraph 3(1)(b) in accordance with that paragraph; or

(ii)a statement that no such report is required.]

(2) The regulator must as soon as reasonably practicable—

[F5(za)where relevant, determine the historical activity level of every sub-installation referred to in paragraph 3(1)(b) in accordance with Article 17(1) of the Free Allocation Regulation;]

(a)calculate the final annual number of allowances to be allocated in respect of the installation and of each sub-installation of the installation for each eligible scheme year;

(b)send the [F6determination (if any) and] calculation to the UK ETS authority.

[F7(3) The final annual number of allowances to be allocated in respect of a sub-installation for an eligible scheme year is the preliminary annual number of allowances to be allocated for the scheme year multiplied by the reduction factor for the scheme year (as defined in Article 18a(11) of the Free Allocation Regulation), where—

(a)for sub-installations referred to in paragraph 3(1)(b), the preliminary annual number of allowances must be calculated in accordance with Article 18(1) of the Free Allocation Regulation;

(b)for all other sub-installations, the preliminary annual number of allowances is the number previously calculated under Article 16 of the Free Allocation Regulation (including any corrections required under Article 16(11)).]

(4) But where the relevant notice is a notice under paragraph 7 of Schedule 8 and the first eligible scheme year is the scheme year referred to in paragraph (b)(ii) of the definition of that term in paragraph 1 of this Schedule, the final annual number of allowances to be allocated in respect of a sub-installation for the first eligible scheme year is the number calculated under sub-paragraph (3) of this paragraph multiplied by D/Y, where—

  • D is the number of days in the first eligible scheme year after the date on which the installation’s greenhouse gas emissions permit comes into force;

  • Y is the number of days in the first eligible scheme year.

(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 [F8determination (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 [F9(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.]

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