The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025

Schedule 7 amended (hospitals and small emitters) U.K.

31.—(1) Schedule 7 is amended as follows.

“2026-2030 period” substituted for “2026-2030 allocation period”

(2) Except as provided in paragraph (7), for “2026-2030 allocation period” in each place (including in paragraph headings) substitute “2026-2030 period”.

Paragraph 1 amended (interpretation)

(3) In paragraph 1(1) in the definition of “conversion notice” for “or 23A” substitute “, 23A or 23B”.

Paragraph 3 amended (hospital or small emitter status)

(4) In paragraph 3(6) for “in the allocation period” substitute “in the period”.

Paragraph 18 amended (emissions targets: calculation of later targets where initial targets based on estimates)

(5) In paragraph 18(1) for “an allocation period” substitute “the 2021-2025 allocation period or the 2026-2030 period”.

Paragraph 19A amended (capacity increases: application to increase emissions targets)

(6) After paragraph 19A(5) insert—

“(6) Where an application is made to increase an installation’s emissions targets for scheme years in the 2027-2030 allocation period, the regulator must not consider the application before 1st February 2026 unless, before that date, benchmarks for the 2027-2030 allocation period are set out in Annex 8 to the Free Allocation Regulation.”.

Paragraph 19G amended (capacity increases: interpretation)

(7) In paragraph 19G(1) in the definition of “benchmark” in paragraph (a)—

(a) in sub-paragraph (i) for “, for scheme years in that allocation period” substitute “or the 2026 scheme year, for scheme years in that allocation period or that scheme year”;

(b) in sub-paragraph (ii) for “2026-2030 allocation period” substitute “2027-2030 allocation period”.

Paragraph 22 amended (emissions targets: errors)

(8) In paragraph 22—

(a) in sub-paragraph (1) for “an allocation period” substitute “the 2021-2025 allocation period or the 2026-2030 period”;

(b) in sub-paragraph (2) omit “allocation”;

(c) in sub-paragraph (3) omit “allocation”.

Paragraph 23B inserted

(9) After paragraph 23A insert—

End of hospital or small emitter status: voluntary exit of status for 2027-2030 allocation 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.”.

Commencement Information

I1 Art. 31 in force at 31.3.2025, see art. 2