CHAPTER III

Allocation rules

Renunciation of free allocation of allowances
Article 24
1
Where an installation is an FA installation for the 2021-2025 allocation period, the operator of the installation may by giving notice (a “renunciation notice”) to the regulator renounce free allocation in respect of the remaining scheme years in the 2021-2025 allocation period beginning with the scheme year after the year in which the notice is given.
2
Where an installation is an FA installation for the 2026 and 2027-2030 allocation periods, the operator of the installation may by giving notice (a “renunciation notice”) to the regulator on or after 1st January 2027 renounce free allocation in respect of the remaining scheme years of the 2027-2030 allocation period beginning with the scheme year after the year in which the notice is given.
3
The renunciation notice must set out:
a)
whether the renunciation is made in respect of:
i)
the installation as a whole; or
ii)
one or more sub-installations of the installation (but not all of them); and
b)
where point (a)(ii) applies, the sub-installation or sub-installations in respect of which the renunciation is made.
4
Where a renunciation notice is given, the regulator must:
a)
recalculate the final annual number of allowances to be allocated in respect of the installation for each of the remaining scheme years of the allocation period, to take account of the renunciation notice;
b)
send the calculation to the UK ETS authority.
5
The UK ETS authority must:
a)
approve the final annual number of allowances to be allocated in respect of the installation, making any corrections that the UK ETS authority considers appropriate; and
b)
inform the regulator accordingly.
6
The regulator must inform the operator of the final annual number of allowances approved.
7
Where an application under paragraph 7 of Schedule 6 to the UK ETS Order for the transfer of a greenhouse gas emissions permit containing a statement by the new operator (as defined in paragraph 7 of that Schedule) that the new operator renounces free allocation in respect of the transferred units (as defined in that paragraph) is granted under paragraph 9 of that Schedule:
a)
for the purposes of this Article, the new operator must be treated as giving a renunciation notice in respect of the transferred units; and
b)
in the case of a transfer other than a partial transfer, for the purposes of article 4A(3)(b) and (5)(b) of the UK ETS Order, the renunciation notice must be treated as having been given by the new operator in respect of the installation as a whole.
Art. 24 substituted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 29
Art. 24(2) substituted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 46(2)