{
  "url": "https://openlegislation.uk/eu-regulation-2019-1842/article-3zb",
  "json_url": "https://openlegislation.uk/eu-regulation-2019-1842/article-3zb.json",
  "legislation": "eur/2019/1842",
  "legislation_title": "Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019 laying down rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards further arrangements for the adjustments to free allocation of emission allowances due to activity level changes",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2019-1842",
  "path": "article/3zb",
  "kind": "article",
  "number": "3zb",
  "heading": "Decarbonisation condition: application for no adjustment to last FA year’s allocation where product benchmark sub-installation ceases operation",
  "text": "1. This Article applies where:\n(a) a product benchmark sub-installation (the “old PB sub-installation”) of an FA installation has ceased operation in a scheme year (the “last FA year”);\n(b) the report on activity levels in the last FA year is accompanied by:\n(i) an application for there to be no adjustment to the free allocation of the old PB sub-installation for the last FA year under Article 3za on the grounds that the decarbonisation condition will be met in relation to the old PB sub-installation on or before the date stated in the application (the “restart date”);\n(ii) evidence that the decarbonisation condition will be met in relation to the old PB sub-installation on or before the restart date; and\n(c) the permit for the installation has not been surrendered or revoked.\n2. The decarbonisation condition is met in relation to the old PB sub-installation if:\n(a) the old PB sub-installation has ceased operation;\n(b) new infrastructure has been installed at the installation resulting in a new sub-installation (other than a product benchmark sub-installation with the same product benchmark as the old PB sub-installation) or a change to the system boundaries of an existing sub-installation (other than a product benchmark sub-installation);\n(c) there has been no material reduction in the overall level of production of pre-cessation products produced at the installation (whether or not there is a change to the proportion of the products which make up that overall level of production); and\n(d) the installation of the new infrastructure referred to in point (b) has resulted in a material reduction in the specified emissions per unit of production of those pre-cessation products which continue to be produced at the installation.\n3. For the purposes of paragraph 2(c), a product is a “pre-cessation product” if it was produced at the installation involving a process within the system boundaries of the old PB sub-installation prior to the installation of the new infrastructure referred to in paragraph 2(b).\n4. After receiving the application, the regulator must, as soon as reasonably practicable:\n(a) assess whether or not the decarbonisation condition will be met in relation to the old PB sub-installation on or before the restart date; and\n(b) send the evidence, the regulator’s assessment and the reasons for it to the UK ETS authority.\n5. The UK ETS authority must, after considering the evidence and the regulator’s assessment and reasons:\n(a) determine whether or not the decarbonisation condition will be met in relation to the old PB sub-installation on or before the restart date;\n(b) notify the regulator of the determination;\n(c) if the UK ETS authority determines that the decarbonisation condition will be met in relation to the old PB sub-installation on or before the restart date, notify the regulator of any matters in respect of which the UK ETS authority will need evidence in order to determine whether or not the decarbonisation condition has been met (in addition to reports of the installation’s reportable emissions and activity levels).\n6. If the UK ETS authority determines under paragraph 5 that the decarbonisation condition will not be met in relation to the old PB sub-installation on or before the restart date:\n(a) the regulator must notify the operator of the determination;\n(b) Article 3za applies to the old PB sub-installation without the qualification referred to in paragraph 7(b) (and an adjustment is to be made to free allocation for the last FA year).\n7. If the UK ETS authority determines under paragraph 5 that the decarbonisation condition will be met in relation to the old PB sub-installation on or before the restart date:\n(a) the regulator must notify the operator of the determination and of any matters referred to in paragraph 5(c);\n(b) Article 3za applies to the old PB sub-installation, but the adjustment referred to in paragraph 2(b)(i)(aa) of that Article must not be calculated (and no adjustment is to be made to free allocation for the last FA year on submission of the report on activity levels in the last FA year);\n(c) the operator must notify the regulator of the date (which must be a date on or before the relevant date) on which the operator considers that the decarbonisation condition has been met in relation to the old PB sub-installation;\n(d) the regulator must notify the UK ETS authority where:\n(i) the operator fails on or before the relevant date to notify the regulator of a date under point (c); or\n(ii) the installation’s permit is surrendered or revoked on or before the relevant date.\n8. Where the operator notifies the regulator of a date under paragraph 7(c):\n(a) the first activity level report submitted under Article 3 that contains data for a period of at least 6 months before that date must include the information referred to in section 3 of Annex 4 to the Free Allocation Regulation and must be accompanied by evidence of any matters referred to in paragraph 5(c);\n(b) as soon as reasonably practicable after receiving the activity level report and any accompanying evidence, the regulator must:\n(i) assess whether the decarbonisation condition has been met in relation to the old PB sub-installation on or before the relevant date;\n(ii) send the assessment, activity level report and any accompanying evidence to the UK ETS authority;\n(c) on receiving the assessment, activity level report and any accompanying evidence, the UK ETS authority must:\n(i) determine whether or not the decarbonisation condition has been met in relation to the old PB sub-installation on or before the relevant date;\n(ii) notify the regulator of the determination;\n(d) the regulator must notify the operator of a determination under point (c).\n9. Despite paragraph 7(b), if any of the following occurs, Article 3za applies to the old PB sub-installation without the qualification referred to in paragraph 7(b) (and an adjustment is to be made to free allocation for the last FA year):\n(a) the UK ETS authority determines that the decarbonisation condition has not been met in relation to the old PB sub-installation on or before the relevant date;\n(b) the operator fails on or before the relevant date to notify the regulator of a date under paragraph 7(c);\n(c) the installation’s permit is surrendered or revoked on or before the relevant date.\n10. In this Article, the “relevant date” is the restart date or, where the UK ETS authority determines under Article 3zc that the decarbonisation condition will be met in relation to the old PB sub-installation on or before the extended date referred to in paragraph 3 of that Article, the extended date.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Arts. 3za-3zc inserted (2.2.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025 (S.I. 2025/100), arts. 2(2), 14 (with art. 20(1)(2))"
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "Council Regulation (EEC) No 3924/91 of 19 December 1991 on the establishment of a Community survey of industrial production (OJ L 374, 31.12.1991, p. 1)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2019/1842/article/3zb",
    "retrieved_at": "2026-11-01T14:43:02.825885+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}