Article 53 Article 5 amended (adjustments to free allocation due to activity level changes)I1

Article 5 is amended as follows.

After paragraph 2 insert—

“2a.

In the case of a sub-installation of a type 1 2026 incumbent (as defined in Part 2 of the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 2) Order 2025), for the purpose of determining whether a “further” adjustment can take place under paragraph 2 in consequence of the obligation in Article 3 to report on activity levels in 2025 on or before 31 March 2026, the reference in paragraph 2 to an “allocation period” must be read as a reference to the period consisting of the 2021-2025 allocation period and the 2026 allocation period (and consequently, if an adjustment under paragraph 1 has been approved by the UK ETS authority in that period, a further adjustment can take place only in the circumstances set out in paragraph 2).”.