Article 23 Article 18a amended (assessment of applications and final allocation at installation level for new entrants)

Article 18a is amended as follows.

In paragraph 1 after “reasonably practicable” insert “after completing the calculation required by Article 18 or the recalculation required by paragraph 4b”.

In points (f)(ii) and (g) of paragraph 2 after “the relevant allocation period” insert “, unless this calculation has not yet taken place by virtue of the requirement in paragraph 4a” in each place that those words appear.

After paragraph 4 insert—

“4a.

Where the benchmarks for the 2028, 2029 and 2030 scheme years have not been adopted under Article 18(9)(b)(ii) on or before 30 September 2026:

(a)

the calculation of the final number of allowances to be allocated in respect of each installation and each sub-installation for the 2028, 2029 and 2030 scheme years must be undertaken by the regulator on or after 1 October 2027;

(b)

where an ALC adjustment applies to the sub-installation for the 2027 scheme year, the regulator must:

(i)

make an equivalent adjustment to the final number of allowances to be allocated in respect of that sub-installation for the 2028, 2029 and 2030 scheme years; and

(ii)

reflect this adjustment in the final number of allowances to be allocated in respect of the installation which the sub-installation forms part of.

4b.

Where Article 18(2C) applies (including as applied by Article 18(2E)), the regulator must:

(a)

recalculate the final number of allowances to be allocated in the relevant period in respect of the UK CBAM sub-installation in accordance with paragraph 3;

(b)

where an ALC adjustment applies to the UK CBAM sub-installation for the scheme year immediately preceding the relevant period, make an equivalent adjustment to the final number of allowances referenced in point (a); and

(c)

recalculate the final annual number of allowances to be allocated in the relevant period in respect of each installation that has at least one UK CBAM sub-installation, taking into account any adjustment required by point (b).

4c.

In this Article:

(a)

in paragraphs 4a and 4b “ALC adjustment” has the same meaning as provided for in Article 16b(7)(a);

(b)

in paragraph 4b “relevant period” has the same meaning as provided for in Article 18(2D), unless Article 18(2E) applies in which case it has the same meaning provided for in Article 18(2E).”.