Article 35 Validity of allowances
Subject to paragraph (2), an allowance is valid for the purposes of compliance with article 36—
for the year in respect of which it was issued; and
for any subsequent year,
but an allowance issued in a phase is not valid in respect of CRC emissions made in a subsequent phase.
Where—
a participant is required to acquire and surrender additional allowances under article 74(4)(b) or 77(2)(a) in respect of an annual reporting year; and
the participant holds an allowance which is valid for the following year (“year 2”),
the participant may not surrender the allowance which is valid for year 2 in order to comply with those articles.
A participant must acquire the additional allowances from a special allocation or from a third party.
An allowance is not valid for any purpose other than a purpose for which it is valid under paragraphs (1) and (2).
In paragraph (3), “special allocation” means the issue of allowances conducted by the Environment Agency under regulation 10 of the 2012 Regulations.