# The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025, Article 47: Article 25 amended (mergers and splits)

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

(1) Article 25 is amended as follows.
(2) For paragraph 9(b) substitute—
“(b) where the final annual number of allowances to be allocated in respect of a new installation:
(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;
(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.”.
(3) In paragraph 10—
(a) for point (a)(ii) substitute—
“(ii) where any installation before the split or merger is an FA installation for the 2026 and 2027-2030 allocation periods:
(aa) with an entry in the allocation table for the 2026 allocation period, the 2026 allocation period;
(bb) with an entry in the allocation table for the 2027-2030 allocation period, the 2027-2030 allocation period;”;
(b) after point (d) insert—
“(e) “incumbent installation” means:
(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;
(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.”.
(4) After paragraph 10 insert—
“11. This paragraph applies, in the case of a merger, where:
(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
(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).
12. Where paragraph 11 applies:
(a) this Article applies as if:
(i) a reference to the first relevant calendar year were a reference to 2024;
(ii) a reference to the first recalculated scheme year were a reference to the 2027 scheme year;
(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;
(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.”.

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Source: https://www.legislation.gov.uk/uksi/2025/124/article/47 (the official version)
Page: https://openlegislation.uk/greenhouse-gas-emissions-trading-scheme-amendment-no-2-order-2025/article-47
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.