CHAPTER II

Application, data reporting and monitoring rules

Application for free allocation in 2027-2030 allocation period by operators of incumbent installations
Article 4
1.
The operator of any of the following installations may apply to the regulator for free allocation in the
2027-2030
allocation period:
a
an installation for which a permit is issued on or before 30 June
2025
;
b
an installation that is an ultra-small emitter for the
2025
scheme year;
c
an installation for which an application for a permit has been made but not yet determined.
1a
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;
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; and
ii
where relevant, resubmit the documents referred to in paragraph 2 with any amendments necessary to take account of any changes to free allocation rules for the 2027-2030 allocation period made after 31 March 2025 (for example, changes to the list of sectors and subsectors set out in the Annex to Commission Delegated Decision (EU) 2019/708).
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).
2
The documents to be submitted are:
a
a baseline data report verified 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 ...;
b
except 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 Article 8 and Annex VI;
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.
3
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
2025
.
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
... period);
b
paragraph 3 of Schedule 8 to that Order (obtaining ultra-small emitter status for 2026-2030
... period).
5
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 paragraph 1a(b)(ii), 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.
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.
Words 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)
Art. 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)
Art. 4(3)(4) 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(5)
Words 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)
Words 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)
Words in Art. 4(2)(b) 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(4)(b)(i)
Words in Art. 4(2)(b) 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(4)(b)(ii)
Art. 4(2)(c) 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)(c)
Word 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)
Word in Art. 4(3) substituted (31.3.2024) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2024 (S.I. 2024/192), arts. 2, 11(4)
Word 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)
Art. 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)
Word 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)
Words 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)
Words in Art. 4(4) omitted (31.3.2025) by virtue of The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(6)
Art. 4(5)-(8) inserted (31.3.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 (S.I. 2025/124), arts. 2, 38(7)