Article 18 Preliminary allocation to new entrantsF22

The regulator must calculate the preliminary annual number of allowances to be allocated free of charge in respect of a new entrant for scheme years in the relevant allocation period in accordance with this Article

Where the start of normal operation of a new entrant is before the date on which the permit (including a permit within the meaning of GGETSR 2012) for the installation comes into force, for the purposes of this Article and Article 18a:

F2Where the historical activity level of a sub-installation of the new entrant has been determined under Article 17, the preliminary annual number of allowances to be allocated free of charge in respect of the sub-installation for the first scheme year in the relevant allocation period after the year in which the start of normal operation occurs and for each subsequent scheme year in the relevant allocation period is, as follows:

F6Article 16(2a), (2b), (3), (4), (5) and (7) shall apply mutatis mutandis to the calculation of the preliminary annual number of emission allowances allocated free of charge F7in respect of new entrants under this paragraph and paragraph 2 F8, but Article 16(15) to (17) does not apply to this calculation.

F9Where the start of normal operation of a sub-installation of a new entrant occurs in a scheme year in the relevant allocation period, the preliminary annual number of emission allowances allocated free of charge for the F10scheme year shall correspond to the value of the applicable benchmark value for each sub-installation multiplied by the activity level of that year.

Paragraph 2 applies whether or not the historical activity level of the sub-installation has been determined under Article 17.

Where the benchmarks for the 2028, 2029 and 2030 scheme years have not been adopted under paragraph 9(b)(ii) on or before 30 September 2026, the calculation referred to in paragraph 1 and 2 of preliminary annual number of allowances to be allocated free of charge for the 2028, 2029 and 2030 scheme years must be undertaken by the regulator on or after 1 October 2027.

Where the regulator has calculated the preliminary annual number of allowances to be allocated free of charge for a UK CBAM sub-installation for a scheme year and a different factor is subsequently provided for under Article 16(14), the regulator must recalculate the preliminary annual number of emissions allowances allocated free of charge in respect of the relevant period for the UK CBAM sub-installation in accordance with paragraph 1 or 2.

In paragraph 2C “relevant period” begins with the scheme year for which the factor has changed under Article 16(14) and ends with the 2030 scheme year; but:

Where the product benchmark or the PRODCOM code of the product produced in a sub-installation that is not a UK CBAM sub-installation for the 2027-2030 allocation period is subsequently added to the relevant table in Annex 9, the regulator must carry out a recalculation in respect of the sub-installation as if paragraph 2C applied, except that the relevant period is to be read as beginning with the scheme year after the scheme year in which the product benchmark or PRODCOM code was added to the relevant table in Annex 9 and ending with the 2030 scheme year; but:

The preliminary annual amount of emission allowances allocated free of charge for each installation shall be the sum of all sub-installations' preliminary annual numbers of emission allowances allocated free of charge calculated in accordance with paragraphs 1 and 2. The second subparagraph of Article 16(6) shall apply.

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For the purpose of the calculations referred to in paragraphs F151 to 3, the number of allowances for sub-installations and installations shall be expressed as the nearest integer F16, taking 0.5 as nearest to the previous integer.

In this Article F18... and Article 18b, “relevant allocation period” means:

But in paragraph 1(a) of this Article and in Articles 19 to 22, as those Articles apply for the purpose of this Article, “relevant allocation period” means the allocation period containing the scheme year for which the preliminary annual number of allowances is to be calculated.

In paragraphs 1 and 2, reference to benchmarks is to: