{
  "url": "https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-no-2-order-2025/article-47",
  "json_url": "https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-no-2-order-2025/article-47.json",
  "legislation": "uksi/2025/124",
  "legislation_title": "The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025",
  "legislation_url": "https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-no-2-order-2025",
  "path": "article/47",
  "kind": "article",
  "number": "47",
  "heading": "Article 25 amended (mergers and splits)",
  "text": "(1) Article 25 is amended as follows.\n(2) For paragraph 9(b) substitute—\n“(b) where the final annual number of allowances to be allocated in respect of a new installation:\n(i) for each scheme year in the 2021-2025 allocation period beginning with the first recalculated scheme year is zero, that the installation is not an FA installation for the 2021-2025 allocation period;\n(ii) for the 2026 scheme year is zero, or for each scheme year in the 2027-2030 allocation period beginning with the first recalculated scheme year is zero, that the installation is not an FA installation for the 2026 and 2027-2030 allocation periods.”.\n(3) In paragraph 10—\n(a) for point (a)(ii) substitute—\n“(ii) where any installation before the split or merger is an FA installation for the 2026 and 2027-2030 allocation periods:\n(aa) with an entry in the allocation table for the 2026 allocation period, the 2026 allocation period;\n(bb) with an entry in the allocation table for the 2027-2030 allocation period, the 2027-2030 allocation period;”;\n(b) after point (d) insert—\n“(e) “incumbent installation” means:\n(i) if the transfer date is before 31 March 2026, an installation in respect of which a deemed application for free allocation in the 2021-2025 allocation period is made;\n(ii) if the transfer date is on or after 31 March 2026, an installation in respect of which an application under Article 4 for free allocation in the 2027-2030 allocation period is made.”.\n(4) After paragraph 10 insert—\n“11. This paragraph applies, in the case of a merger, where:\n(a) the transfer date is after the date on which the allocation table for the 2026 allocation period is published but before 31 March 2026; and\n(b) the installations before the merger include a type 1 2026 incumbent (as defined in Part 2 of the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025) and a type 2 2026 incumbent (as defined in that Part).\n12. Where paragraph 11 applies:\n(a) this Article applies as if:\n(i) a reference to the first relevant calendar year were a reference to 2024;\n(ii) a reference to the first recalculated scheme year were a reference to the 2027 scheme year;\n(b) the operator of the new installation must comply with the obligation in Article 3 of the Activity Level Changes Regulation to report on activity levels in 2025 as if the merger had not taken place;\n(c) paragraph 12 of Schedule 5A to the UK ETS Order applies as if in sub-paragraph (8) “and the transfer date (as defined in paragraph 9(6) of Schedule 6 to this Order) is on or after 31st March in a scheme year” were omitted.”.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "Art. 47 in force at 31.3.2025, see art. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2025/124/article/47",
    "retrieved_at": "2026-10-28T21:20:49.958171+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."
}