Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC of the European Parliament and of the Council (Text with EEA relevance)

Changes over time for: Article 4

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Article 4U.K.Application for free allocation [F1in [F22027-2030] allocation period] by operators of incumbent installations

[F31. The operator of any of the following installations may apply to the regulator for free allocation in the [F42027-2030] allocation period:

(a)an installation for which a permit is issued on or before 30 June [F52025];

(b)an installation that is an ultra-small emitter for the [F52025] scheme year;

(c)an installation for which an application for a permit has been made but not yet determined.]

[F61a.An application consists of 2 stages to be completed, as follows:

(a)the first stage is that in the period beginning with 1 April 2025 and ending with 30 June 2025, the operator must submit the documents referred to in paragraph 2 to the regulator;

[F7(b)the second stage is that in the period beginning with 1 April 2026 and ending with 30 June 2026, the operator must:

(i)notify the regulator in writing that the operator wishes the application to proceed;

(ii)notify the regulator in writing which of their sub-installations are UK CBAM sub-installations and which of their sub-installations are not UK CBAM sub-installations; and

(iii)where requested by the regulator, resubmit the documents referred to in paragraph 2.]

1b.In the case of an operator of an installation included in the hospital and small emitter list for 2026-2030 or the ultra-small emitter list for 2026-2030, a notification under paragraph 1a(b)(i) that the operator wishes the application to proceed must also state whether the operator:

(a)does not wish the installation to be a hospital or small emitter or an ultra-small emitter for the scheme years in the 2027-2030 allocation period (see paragraph 23B of Schedule 7, and paragraph 7A of Schedule 8, to the UK ETS Order); or

(b)wishes the application to proceed for the purpose of Schedule 8A to the UK ETS Order only (free allocation for former hospital or small emitters and ultra-small emitters).]

[F81c.As part of the second stage under paragraph 1a(b), where the operator has any relevant product benchmark sub-installation, any relevant heat benchmark sub-installation, any relevant fuel benchmark sub-installation or any relevant process emissions sub-installation, the operator must during the second stage resubmit the documents referred to in paragraph 2(a) and 2(c) reflecting the division required by Article 10(4a). Submission of these documents satisfies the requirement in paragraph 1a(b)(ii).

1d.As part of the second stage under paragraph 1a(b), the operator may notify the regulator that the data submitted in their baseline data report for a sub-installation or installation covering the 2020 scheme year, or both the 2020 and 2021 scheme years, is to be excluded from the calculation under Article 15 of historical activity levels for that sub-installation or installation.

1e.The regulator must request corrections by the operator of any non-conformities or any errors made by the operator during the second stage under paragraph 1a(b) which impact on the determination of the historical activity levels or the calculation of free allocation.]

2.[F9The documents to be submitted are]:

(a)a baseline data report [F10verified in accordance with the Verification Regulation 2018] containing data for the installation, and its sub-installations as specified in Article 10 and Annexes I and II to this Regulation, taking into account, for the calculation of historical activity levels for specific product benchmarks, Annex III to this Regulation, containing each parameter listed in Annex IV to this Regulation and covering the baseline period F11...;

(b)[F12except where a monitoring methodology plan has already been approved in relation to the installation under Article 8,] the monitoring methodology plan which formed the basis for the baseline data report and the verification report, in accordance with [F13Article 8 and] Annex VI;

[F14(c)the verification report on the baseline data report, which (unless the monitoring methodology plan has already been approved by the regulator) must contain the confirmation relating to the plan referred to in Article 27(3)(f) of the Verification Regulation 2018.]

[F153.Where an application is made in respect of an installation referred to in paragraph 1(c), the application must be treated as never having been made unless the permit is issued on or before 30 June [F162025].

4.An application may be made under this Article and under either of the following at the same time:

(a)paragraph 5 of Schedule 7 to the UK ETS Order (obtaining hospital or small emitter status for 2026-2030 F17... period);

(b)paragraph 3 of Schedule 8 to that Order (obtaining ultra-small emitter status for 2026-2030 F17... period).]

[F185.Unless both the first and second stages of an application are completed, the application must be treated as never having been made.

6.Despite paragraph 5, Articles 15 and 15a apply in relation to an application as follows:

(a)Articles 15 and 15a(2) and (3) apply after the first stage is completed; and for the purpose of those provisions, an “application” is an application in respect of which the first, but not the second, stage is completed;

(b)Article 15a(4) and (5) apply after both stages are completed; and for the purpose of those provisions, an “application” is an application in respect of which both stages are completed.

7.Where, as part of the second stage under [F19paragraph 1a(b)(iii) or 1c], the operator resubmits the documents referred to in paragraph 2:

(a)Articles 15 and 15a(2) and (3) apply again in relation to the application, with the following modifications:

(i)any reference to baseline data reports and verification reports must be read as a reference to the resubmitted documents;

(ii)any reference in Article 15a to historical activity levels must be read as a reference to any historical activity levels redetermined under Article 15 as so applied;

(iii)Article 15a(2)(b) applies as if for “30 September 2025” there were substituted “30 September 2026”;

(b)for the purpose of paragraph 6(b), Article 15a(4) and (5) apply in relation to the application taking account of the resubmitted documents.

[F207a.Where, as part of the second stage under paragraph 1a(b), the operator makes a notification under paragraph 1d:

(a)Article 15 applies again in relation to the application, but any reference to baseline period must be read as excluding the 2020 scheme year or the 2020 and 2021 scheme years;

(b)Article 15a(2) and (3) apply again in relation to the application, with the following modifications:

(i)any reference to historical activity levels must be read as a reference to any historical activity levels redetermined under Article 15 as so applied;

(ii)Article 15a(2)(b) applies as if for “30 September 2025” there were substituted “30 September 2026”;

(c)for the purpose of paragraph 6(b), Article 15a(4) and (5) apply in relation to the application taking account of the historical activity levels redetermined under Article 15 as so applied.]

8.The regulator must notify the UK ETS authority of every notification under paragraph 1a(b)(i) and every case where no such notification is received.]

[F219.In this Article:

(a)an operator has a “relevant product benchmark sub-installation” where:

(i)the operator’s stage one baseline data report included a product benchmark sub-installation; and

(ii)as a result of the requirement in Article 10(4a), the inputs, outputs and emissions that were assigned to that product benchmark sub-installation at stage one have subsequently been assigned to two or more product benchmark sub-installations;

(b)an operator has a “relevant heat benchmark sub-installation” where:

(i)the operator’s stage one baseline data report included a heat benchmark sub-installation; and

(ii)as a result of the requirement in Article 10(4a), the inputs, outputs and emissions that were assigned to that heat benchmark sub-installation at stage one have subsequently been assigned to two or more heat benchmark sub-installations;

(c)an operator has a “relevant fuel benchmark sub-installation” where:

(i)the operator’s stage one baseline data report included a fuel benchmark sub-installation; and

(ii)as a result of the requirement in Article 10(4a), the inputs, outputs and emissions that were assigned to that fuel benchmark sub-installation at stage one have subsequently been assigned to two or more fuel benchmark sub-installations;

(d)an operator has a “relevant process emissions sub-installation” where:

(i)the operator’s stage one baseline data report included a process emissions sub-installation; and

(ii)as a result of the requirement in Article 10(4a), the inputs, outputs and emissions that were assigned to that process emissions sub-installation at stage one have subsequently been assigned to two or more process emissions sub-installations.]

Textual Amendments

F1Words in Art. 4 heading inserted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 8(2)

F2Word in Art. 4 heading substituted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(2)

F3Art. 4(1)(1A) substituted for Art. 4(1) (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 8(3)

F4Word in Art. 4(1) substituted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(3)

F5Word in Art. 4(1) substituted (31.3.2024) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2024 (S.I. 2024/192), arts. 2, 11(2)

F6Art. 4(1a)(1b) substituted for Art. 4(1A) (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(4)

F7Art. 4(1a)(b) substituted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 14(2)

F8Art. 4(1c)-(1e) inserted (11.3.2026) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 (S.I. 2026/278), arts. 2, 14(3)

F9Words in Art. 4(2) substituted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(5)

F10Words in Art. 4(2)(a) substituted (31.12.2020) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 8(4)(a)(i)

F11Words in Art. 4(2)(a) omitted (31.12.2020) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2020 (S.I. 2020/1557), art. 2(2), Sch. 1 para. 8(4)(a)(ii)