On Feb. 12, UK GVT issued greenhouse gas emissions trading order.
UK GVT published The greenhouse gas emissions trading scheme (amendment) (no. 2) order 2025 (StIn 2025/124), after conducting two targeted consultations.
Order amends the UK ETS Order Commission Delegated Reg 2019/331 and Commission Implementing Reg 2019/1842 (the Activity Level Changes Regulation).
Follows UK ESNZ Dec. 2024 invited views on free allocation and policy, see #195456.
Also follows UK GVT Feb. 2025 amended emissions trading scheme law, see #242986.
Overview
Makes changes to legislation which gives effect to emissions trading scheme (ETS).
Drives decarbonization by requiring operators to buy allowances based on emissions.
Some operators given free allocation of allowances to mitigate risk of carbon leakage.
Two allocation periods, 2021-25 and 2026-30, in which free allocation is calculated.
This statutory instrument moves the start of the second allocation period for stationary installations from 2026 to 2027, making 2026 a standalone year, and provides for the calculation of free allocation in the 2026 standalone scheme year.
The instrument also makes three changes to other aspects of the scheme.
Requires publication of transaction details between accounts in registry after 3yr delay.
Add limited exceptions to the prohibition on disclosure of scheme data in order to support the development and implementation of related policies.
Support the statutory functions of the Climate Change Committee (CCC).
Extend qualification criteria so installations with low levels of emissions which started operations between Jan. 2, 2021 and Jan. 1, 2024 can apply to be classed as ultra-small emitters during period 2026-30, thereby benefitting from reduced admin burden.
