- Draft legislation
This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Greenhouse Gas Emissions Trading Scheme Order 2020 No. 1265
18.—(1) The UK ETS authority may direct that allowances be created for the purposes of the UK ETS.
(2) An allowance is an allowance to emit 1 tonne of carbon dioxide equivalent.
19. The number of allowances created in the trading period may not exceed the sum of—
(a)736,013,432 multiplied by the 2021-2025 hospital and small emitter reduction factor; and
(b)630,152,247 multiplied by the 2026-2030 hospital and small emitter reduction factor.
20.—(1) The number of allowances created in a scheme year may not exceed the base for the scheme year multiplied by—
(a)if the scheme year is in the 2021-2025 allocation period, the 2021-2025 hospital and small emitter reduction factor;
(b)if the scheme year is in the 2026-2030 allocation period, the 2026-2030 hospital and small emitter reduction factor.
(2) Paragraph (1) is subject to any direction given by the UK ETS authority for the creation of allowances for allocation under regulations made by the Treasury under the Finance Act 2020(1).
(3) But such a direction may not override article 19.
21.—(1) This article applies for the purposes of articles 19 and 20.
(2) The 2021-2025 hospital and small emitter reduction factor is (RE1 – SI1)/RE1, where—
RE1 is the total reportable emissions (within the meaning of GGETSR 2012) in 2016, 2017 and 2018 of all installations (within the meaning of GGETSR 2012) and all UK aircraft operators (within the meaning of GGETSR 2012);
SI1 is the total reportable emissions (within the meaning of GGETSR 2012) in 2016, 2017 and 2018 of all installations included in the hospital and small emitter list for 2021-2025.
(3) The 2026-2030 hospital and small emitter reduction factor is (RE2 - SI2)/RE2, where—
RE2 is the total reportable emissions and the total aviation emissions, expressed in tonnes, in the 2021, 2022 and 2023 scheme years of all installations and all aircraft operators;
SI2 is the total reportable emissions in the 2021, 2022 and 2023 scheme years of all installations included in the hospital and small emitter list for 2026-2030.
(4) In this article, a reference to reportable emissions or aviation emissions is a reference to reportable emissions or aviation emissions—
(a)verified in accordance with the Verification Regulation 2012 or the Verification Regulation 2018;
(b)where relevant, set out in an emissions report accompanied by the notice or declaration referred to in paragraph 3(8)(b)(ii) of Schedule 5 to GGETSR 2012 or paragraph 11(2)(b)(ii) of Schedule 7 to this Order; or
(c)where relevant, considered to be verified under regulation 35(7) of GGETSR 2012 or article 33(2) of this Order.
22. For the purposes of article 20, the base for a scheme year set out in column 1 of table B is the value set out in the corresponding entry in column 2.
Column 1 Scheme year | Column 2 Base |
---|---|
2021 | 155,671,581 |
2022 | 151,437,134 |
2023 | 147,202,686 |
2024 | 142,968,239 |
2025 | 138,733,792 |
2026 | 134,499,344 |
2027 | 130,264,897 |
2028 | 126,030,449 |
2029 | 121,796,002 |
2030 | 117,561,555 |
23. Allowances may be traded, except where prohibited by other legislation.
2020 c. XXX.
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