SCHEDULE 1Free Allocation Regulation amended
Article 16 amended (preliminary allocation at installation level for incumbent installations)
19.
(1)
Article 16 is amended as follows.
(2)
In the heading for “Allocation” substitute “
Preliminary allocation
”
.
(3)
“1.
Where the UK ETS authority informs the regulator under Article 15a(4)(b) that:
(a)
a deemed application for free allocation in the 2021-2025 allocation period is valid, the regulator must calculate the preliminary annual number of allowances to be allocated in respect of the installation for each scheme year in the 2021-2025 allocation period;
(b)
an application for free allocation in the 2026-2030 allocation period under Article 4 is valid, the regulator must calculate the preliminary annual number of allowances to be allocated in respect of the installation for each scheme year in the 2026-2030 allocation period.”.
(4)
In paragraph 2—
(a)
in the first subparagraph—
(i)
in the words before point (a) for “Member States” substitute “
the regulator
”
;
(ii)
in point (d) for “five-year” substitute “
allocation
”
;
(b)
omit the second subparagraph.
(5)
In paragraph 3—
(a)
for “For the purpose of Article 10b(4) of Directive 2003/87/EC, the” substitute “
The
”
;
(b)
for “deemed not to be exposed to a significant risk of carbon leakage as determined in accordance with Article 10b(5) of Directive 2003/87/EC” substitute “
other than those set out in the Annex to Commission Delegated Decision (EU) 2019/708
”
.
(6)
In paragraph 4 for “as determined in accordance with Article 10b(5) of Directive 2003/87/EC” substitute “
set out in the Annex to Commission Delegated Decision (EU) 2019/708
”
.
(7)
In paragraph 5 for “From 2026” substitute “
In the case of an application for free allocation in the 2026-2030 allocation period under Article 4
”
(8)
In paragraph 7 for “Member States and operators” substitute “
the regulator
”
.
(9)
Omit paragraph 8.
(10)
In paragraph 9—
(a)
for “8” substitute “
7
”
;
(b)
after “integer” insert “
, taking 0.5 as nearest to the previous integer
”
.
(11)
“10.
The regulator must send the preliminary annual number of allowances calculated in respect of each installation and each sub-installation of each installation to the UK ETS authority as soon as reasonably practicable after the benchmarks for the relevant allocation period referred to in paragraphs 2 and 5 have been adopted.
11.
The regulator must make any corrections to the calculation required by the UK ETS authority.
12.
In this Article and in Articles 19 to 22, “relevant allocation period” means, in relation to a benchmark adopted in accordance with Article 10a(2) of Directive 2003/87/EC:
(a)
in the case of a deemed application for free allocation in the 2021-2025 allocation period or an application for free allocation in the 2021-2025 allocation period under Article 5(1)(a), the allocation period in the EU ETS beginning on 1 January 2021;
(b)
in the case of an application for free allocation in the 2026-2030 allocation period under Article 4 or an application for free allocation in the 2026-2030 allocation period under Article 5(1)(b), the allocation period in the EU ETS beginning on 1 January 2026.”.