Article 47 Article 25 amended (mergers and splits)I1
United Kingdom
Article 25 is amended as follows.
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.”.
In paragraph 10—
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;”;
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.”.
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.”.