Article 21 Article 16b amended (final allocation at installation level for incumbent installations)

Article 16b is amended as follows.

In paragraph 1(a)(ii) after “scheme year in the 2027-2030 allocation period” insert “subject to paragraph 1a”.

After paragraph 1 insert—

“1a.

Where Article 16(1a) applies the regulator must in the case of an application for free allocation in the 2027-2030 allocation period under Article 4:

(a)

as soon as reasonably practicable after the issue of the statement referred to in Article 16a(5a)(c):

(i)

calculate the final annual number of allowances to be allocated in respect of each installation and each sub-installation of each installation for the 2027 scheme year; and

(ii)

send the calculation to the UK ETS authority;

(b)

as soon as reasonably practicable after the publication of the matters referred to in Article 16a(5a)(b):

(i)

calculate the final annual number of allowances to be allocated in respect of each installation and each sub-installation of each installation for the 2028, 2029 and 2030 scheme years;

(ii)

where an ALC adjustment applies to the sub-installation for the 2027 scheme year, make an equivalent adjustment to the final number of allowances to be allocated in respect of that sub-installation for the 2028, 2029 and 2030 scheme years and reflect this adjustment in the final number of allowances to be allocated in respect of the installation which the sub-installation forms part of; and

(iii)

send the calculation to the UK ETS authority.”.

After paragraph 5 insert—

“6.

Where Article 16(15) applies (including as applied by Article 16(17)):

(a)

the regulator must:

(i)

recalculate the final annual number of allowances to be allocated in the relevant period in respect of each UK CBAM sub-installation in accordance with paragraph 2;

(ii)

where an ALC adjustment applies to the UK CBAM sub-installation for the scheme year immediately preceding the relevant period, make an equivalent adjustment to the final number of allowances referenced in point (a)(i);

(iii)

recalculate the final annual number of allowances to be allocated in the relevant period in respect of each installation that has at least one UK CBAM sub-installation, taking into account any adjustment required by point (a)(ii); and

(iv)

send the recalculation to the UK ETS authority;

(b)

after the UK ETS authority receives the recalculation, paragraph 4 applies.

7.

In this Article:

(a)

in paragraphs 1a(b) and 6 an “ALC adjustment” means an adjustment to free allocation under the Activity Level Changes Regulation approved by the UK ETS authority under Article 6a of that Regulation;

(b)

in paragraph 6 “relevant period” has the same meaning as provided for in Article 16(16), unless Article 16(17) applies in which case it has the same meaning provided for in Article 16(17).”.