On 4 August 2021, there was published on the legislation.gov.uk website The Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) (No.2) Regulations 2021.
The statutory instrument amends the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (the Auctioning Regulations). The Auctioning Regulations make provision for the auctioning of emissions allowances to emit 1 tonne of carbon dioxide equivalent under the UK Emissions Trading Scheme (the UK ETS) and introduce mechanisms to support market stability in this new scheme. The UK ETS was established by the Greenhouse Gas Emissions Trading Scheme Order 2020.
The statutory instrument clarifies the policy intent in the Auctioning Regulations as regards the calculation of the auction share and information sharing channels. The Regulations also allow the Cost Containment Mechanism (which enables HM Treasury to amend the distribution or volume of allowances to be auctioned in any one year if the carbon price exceeds specified limits) to access allowances that remain unallocated to stationary installations and in the flexible share.
The statutory instrument comes into force on the 21st day after the day on which it is laid before the House of Commons.