Cap for scheme yearsU.K.
20.—[F1(1) The number of allowances created in a scheme year may not exceed the sum of—
(a)the base for the scheme year multiplied by—
(i)if the scheme year is in the 2021-2025 allocation period, the 2021-2025 hospital and small emitter reduction factor;
(ii)if the scheme year is in the 2026-2030 allocation period, the 2026-2030 hospital and small emitter reduction factor; and
(b)the balance of allowances in the new entrants' reserve on 1st January in the scheme year (see article 34G for the new entrants' reserve).]
(2) Paragraph (1) is subject to any direction given by the UK ETS authority for the creation of allowances for allocation under regulations made by the Treasury under the Finance Act 2020 M1 [F2or for the creation of up to 40,984,970 allowances in the trading period for the purpose of free allocation in respect of installations].
(3) But such a direction may not override article 19.
Textual Amendments
F1Art. 20(1) substituted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), arts. 2(1), 11(2)
F2Words in art. 20(2) inserted (1.1.2023) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2022 (S.I. 2022/1173), arts. 2, 5(2)
Commencement Information
I1Art. 20 in force at 12.11.2020, see art. 2(1)
Marginal Citations