The Greenhouse Gas Emissions Trading Scheme Order 2020

[F1Calculation and approval of final allocationU.K.

This section has no associated Explanatory Memorandum

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; and

(b)a monitoring methodology plan is approved in relation to the installation under Article 8 of the Free Allocation Regulation.

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

(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 calculation to the UK ETS authority.

(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 calculated under Article 16 of the Free Allocation Regulation (including any corrections required under Article 16(11)) multiplied by the reduction factor for the scheme year (as defined in Article 18(11) of the Free Allocation Regulation).

(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 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 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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