Commission Delegated Regulation (EU) 2019/331Dangos y teitl llawn

[F1 Article 18a U.K. Assessment of applications and final allocation at installation level for new entrants

1. Where an application for free allocation is made by a new entrant under Article 5, the regulator must send the information set out in paragraph 2 to the UK ETS authority as soon as reasonably practicable [F2 after completing the calculation required by Article 18 or the recalculation required by paragraph 4b].

2. The information is:

(a) details of the installation, including details of the greenhouse gas emissions permit in force;

(b) the information contained in the new entrant data report submitted with the application under Article 5;

(c) the historical activity levels (if any) determined under Article 17;

(d) the preliminary annual number of allowances to be allocated in respect of the installation and of each sub-installation separately, as calculated under Article 18;

(e) where the regulator has not, by virtue of Article 5(6)(c), determined historical activity levels or the preliminary annual number of allowances, the regulator's explanation;

(f) except where point (e) applies, the final annual number of allowances to be allocated in respect of each sub-installation of the installation:

(i) for the scheme year in the relevant allocation period in which the start of normal operation of the sub-installation occurs; and

(ii) where the historical activity level of the sub-installation has been determined under Article 17, for each subsequent scheme year in the relevant allocation period [F3 , unless this calculation has not yet taken place by virtue of the requirement in paragraph 4a];

(g) except where point (e) applies, the final annual number of allowances to be allocated in respect of the installation for each scheme year in the relevant allocation period [F4 , unless this calculation has not yet taken place by virtue of the requirement in paragraph 4a];

(h) whether or not a monitoring methodology plan has been approved in relation to the installation under Article 8.

3. The final annual number of allowances to be allocated in respect of a sub-installation for a scheme year is the preliminary annual number of allowances calculated under Article 18 multiplied by the reduction factor for the scheme year.

4. The final annual number of allowances to be allocated in respect of an installation for a 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.

[F5 4a. Where the benchmarks for the 2028, 2029 and 2030 scheme years have not been adopted under Article 18(9)(b)(ii) on or before 30 September 2026:

(a) the calculation of the final number of allowances to be allocated in respect of each installation and each sub-installation for the 2028, 2029 and 2030 scheme years must be undertaken by the regulator on or after 1 October 2027;

(b) where an ALC adjustment applies to the sub-installation for the 2027 scheme year, the regulator must:

(i) make an equivalent adjustment to the final number of allowances to be allocated in respect of that sub-installation for the 2028, 2029 and 2030 scheme years; and

(ii) reflect this adjustment in the final number of allowances to be allocated in respect of the installation which the sub-installation forms part of.

4b. Where Article 18(2C) applies (including as applied by Article 18(2E)), the regulator must:

(a) recalculate the final number of allowances to be allocated in the relevant period in respect of the UK CBAM sub-installation in accordance with paragraph 3;

(b) where an ALC adjustment applies to the UK CBAM sub-installation for the scheme year immediately preceding the relevant period, make an equivalent adjustment to the final number of allowances referenced in point (a); and

(c) recalculate the final annual number of allowances to be allocated in the relevant period in respect of each installation that has at least one UK CBAM sub-installation, taking into account any adjustment required by point (b).

4c. In this Article:

(a) in paragraphs 4a and 4b “ALC adjustment” has the same meaning as provided for in Article 16b(7)(a);

(b) in paragraph 4b “relevant period” has the same meaning as provided for in Article 18(2D), unless Article 18(2E) applies in which case it has the same meaning provided for in Article 18(2E).]

5. The UK ETS authority must as soon as reasonably practicable:

(a) assess the application for free allocation and, where relevant, the regulator's explanation under paragraph 2(e); and

(b) inform the regulator whether or not the application is valid.

6. Where the application is valid, the UK ETS authority must also:

(a) approve the final annual number of allowances, making any corrections to the historical activity levels, preliminary annual number of allowances and final annual number of allowances that the UK ETS authority considers appropriate; and

(b) inform the regulator of the matters referred to in point (a).

7. But where a monitoring methodology plan has not been approved in relation to the installation at the date on which the information set out in paragraph 2 is sent to the UK ETS authority, paragraph 6 applies only after the regulator informs the UK ETS authority that the monitoring methodology plan submitted to the regulator for approval has been approved and does not apply if the regulator informs the UK ETS authority that the monitoring methodology plan has been rejected.

8. The regulator must give notice to the operator of the installation of the following:

(a) whether or not the application is valid;

(b) if the application is not valid, the reasons why it is not valid.

9. Where the application is valid, the regulator must also give notice to the operator:

(a) of the final annual number of allowances approved under paragraph 6; or

(b) that a final annual number of allowances has not been approved because the monitoring methodology plan submitted to the regulator for approval has been rejected.

10. For the purpose of the calculations referred to in paragraphs 3 and 4, the number of allowances for sub-installations and installations must be expressed as the nearest integer, taking 0.5 as nearest to the previous integer.

11. For the purposes of this Article, the reduction factor for a scheme year set out in column 1 of table B is the value set out in the corresponding entry in column 2.

Table B

Column 1	Column 2
Scheme year	Reduction factor
2021, 2026	1
2022, 2027	0.978
2023, 2028	0.956
2024, 2029	0.934
2025, 2030	0.912

12. For the purposes of this Article, an application for free allocation is valid if:

F6 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the application is F7 ... in accordance with this Regulation.]

Textual Amendments

F1 Art. 18a inserted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 23

F2 Words in Art. 18a(1) inserted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 23(2)

F3 Words in Art. 18a(2)(f)(ii) inserted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 23(3)

F4 Words in Art. 18a(2)(g) inserted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 23(3)

F5 Art. 18a(4a)-(4c) inserted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 23(4)

F6 Art. 18a(12)(a) omitted (E.W.S.) (1.1.2024 immediately after S.I. 2023/850 comes into force) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 (S.I. 2023/1387), arts. 2(1), 18(2)(a) (which amendment was extended to N.I. (1.1.2025) by virtue of S.I. 2024/1366, arts. 2(2)(a), 45(2))

F7 Word in Art. 18a(12)(b) omitted (E.W.S.) (1.1.2024 immediately after S.I. 2023/850 comes into force) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2023 (S.I. 2023/1387), arts. 2(1), 18(2)(b) (which amendment was extended to N.I. (1.1.2025) by virtue of S.I. 2024/1366, arts. 2(2)(a), 45(2))