http://www.legislation.gov.uk/uksi/2021/484/regulation/9The Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021texttext/xmlenCLIMATE CHANGEStatute Law Database2026-05-22Expert Participation2026-04-08 These Regulations make provision under the Finance Act 2020 for auctions of allowances to emit 1 tonne of carbon dioxide equivalent created under the Greenhouse Gas Emissions Trading Scheme Order 2020. PART 3 Auction CalendarAnnual volumes of allowances91 Except as otherwise provided in these Regulations, the volume of allowances to be auctioned in any calendar year must be AC – (AFA + IC + RFS + NER + BF)+ T, where—aAC for the calendar year is the base for that year determined in accordance with paragraph (10)(a) multiplied by—iin the case of a calendar year up to and including 2025, the 2021-2025 hospital and small emitter reduction factor calculated in accordance with article 21(2) of the Trading Scheme Order;iiin the case of a calendar year from 2026 up to and including 2030, the 2026-2030 hospital and small emitter reduction factor calculated in accordance with article 21(3) of the Trading Scheme Order;b in relation to a calendar year corresponding to a scheme year in the 2021-2025 allocation period, “AFA” is—itotal number of allowances to be allocated free of charge under article 34K of the Trading Scheme Order (the aviation free allocation) in the scheme year, oriiif the number in paragraph (i) is not known, the notional number of allowances to be allocated in the scheme year in question as part of the aviation free allocation, determined in accordance with paragraph (9),bain relation to any other calendar year, AFA is zero;cIC for the calendar year is the number of allowances determined in accordance with paragraph (10)(b);dRFS for the calendar year is the number of allowances determined in accordance with paragraph (10)(c);eNER for the calendar year is the number of allowances determined in accordance with paragraph (10)(d);fBF means—iif part of the volume of allowances to be auctioned in the calendar year has been brought forward to increase the volume of allowances auctioned in a previous calendar year in accordance with measures authorised under regulation 12(1)(b)(i), the volume of allowances brought forward;iiin any other case, zero.gT for the calendar year is the number of allowances determined in accordance with paragraph (10)(e).2Where AFA as determined during the calendar year under paragraph (1)(b)(i) (“AFA1”) is greater that the notional number of allowances determined under paragraph (1)(b)(ii) (“AFA2”), a number of allowances equal to AFA1 minus AFA2 is to be removed from the total number of allowances to be auctioned in that calendar year, and the auctioneer must adjust the number of allowances to be auctioned at the auctions to be held during the year after AFA1 has been established as the auctioneer considers appropriate.3When AFA1 is less than AFA2, a number of allowances equal to AFA2 minus AFA1 is to be added to the total number of allowances to be auctioned in that calendar year, divided between the auctions which are to be held during that year after AFA1 has been established as the auctioneer considers appropriate.4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Any volume of allowances that may not be auctioned in a given calendar year due to the rounding required by regulation 5(1) must be accounted for in the volume of allowances to be auctioned in the subsequent calendar year.8Where the volume of allowances to be auctioned in a calendar year is increased under paragraph (3), the UK ETS authority may ... create additional allowances for auction in that year.9For the purposes of paragraph (1)(b)(ii), the notional number of allowances to be allocated as part of the aviation free allocation in the scheme year is set out in the following table.Scheme yearNotional aviation free allocation20215,181,02120225,064,47420234,947,92820244,831,38120254,714,835. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .10For the purposes of paragraph (1), for a calendar year referred to in column 1 of the following table—athe base is the number of allowances set out in the corresponding entry in column 2;bIC is the number of allowances set out in the corresponding entry in column 3;cRFS is the number of allowances set out in the corresponding entry in column 4;dNER is the number of allowances set out in the corresponding entry in column 5;eT is the number of allowances set out in the corresponding entry in column 6.Column 1Calendar or scheme yearColumn 2BaseColumn 3ICColumn 4RFSColumn 5NERColumn 6T2021155,671,58157,856,5724,098,4973,024,90702022151,437,13456,273,4324,098,4973,024,90702023147,202,68654,690,2924,098,4973,024,9070202492,062,88236,825,1532,255,1071,664,38823,316,495202586,742,01434,696,8062,255,1071,664,38713,323,712202679,059,69031,623,8762,255,1071,664,3879,992,784202770,127,99628,051,1982,255,1071,664,3876,661,856202853,498,50221,399,4012,255,1061,664,3870202950,918,57220,367,4292,255,1061,664,3870203049,320,16419,728,0662,255,1061,664,3870Reg. 9 in force at 22.4.2021, see reg. 1(2)Words in reg. 9(8) omitted (19.5.2021) by virtue of The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2021 (S.I. 2021/561), regs. 1(2), 2(4)Words in reg. 9(1) substituted (25.8.2021) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 4(2)(a)(i)Words in reg. 9(1) substituted (25.8.2021) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 4(2)(a)(ii)Reg. 9(1)(f) inserted (25.8.2021) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 4(2)(d)Reg. 9(4)-(6) omitted (25.8.2021) by virtue of The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No. 2) Regulations 2021 (S.I. 2021/917), regs. 1(2), 4(3)Words in reg. 9(1) inserted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(a)Reg. 9(1)(ba) inserted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(d)Reg. 9(1)(g) inserted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(f)Words in reg. 9(9) Table omitted (4.10.2023) by virtue of The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(3)Reg. 9(1)(a) substituted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(b)Words in reg. 9(1)(b) inserted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(c)Reg. 9(10) substituted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(4)Reg. 9(1)(c)-(e) substituted (4.10.2023) by The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (S.I. 2023/994), regs. 1(2), 3(2)(e)