# The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025, Article 43: Article 16a amended (cross-sectoral correction factors)

Extent: E+W+S+N.I.

(1) Article 16a is amended as follows.
(2) In paragraph 1 in the words before point (a) after “allocation period” insert “other than the 2026 allocation period”.
(3) In paragraph 5 in the words before point (a) after “allocation period” insert “other than the 2026 allocation period”.
(4) After paragraph 6 and table A insert—
“6a. But where the industry cap for the 2026 scheme year exceeds the total final annual number of allowances approved under Part 2 of the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025 to be allocated for the 2026 scheme year in respect of all 2026 incumbents (as defined in Part 2 of that Order), the industry cap for the 2027 scheme year must be treated as being increased by the difference.”.
(5) For paragraph 7(b) substitute—
“(b) an application for free allocation in the 2027-2030 allocation period is made in respect of the installation under Article 4 and the installation is included in the hospital and small emitter list for 2026-2030 or the ultra-small emitter list for 2026-2030 unless, as part of the second stage of the application under Article 4(1a)(b)(i):
(i) the operator of the installation notifies the regulator on or before 30 June 2026 that the operator wishes the application to proceed because the operator does not wish the installation to be a hospital or small emitter or an ultra-small emitter for the scheme years in the 2027-2030 allocation period; and
(ii) the UK ETS authority informs the regulator under Article 15a(4) that the application is valid.”.
(6) In paragraph 8 for “2026-2030 allocation period” substitute “2027-2030 allocation period”.

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Source: https://www.legislation.gov.uk/uksi/2025/124/article/43 (the official version)
Page: https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-no-2-order-2025/article-43
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.