On 14 September 2023, HM Treasury published statutory instrument 2023 No.994, the Greenhouse Gas Emissions Trading Scheme Auctioning (Amendment) Regulations 2023 (the SI).

The Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021 (the Auctioning Regulations) provide for the auctioning of allowances used in the UK Emissions Trading Scheme, which was established by the Greenhouse Gas Emissions Trading Scheme Order 2020.

The SI amends the Auctioning Regulations. The number of allowances to be auctioned from 2024 onwards is reduced; these include an amendment to reflect the fact that there is no free allocation for aviation from 2026 onwards. In addition, the number of allowances that may be used for the cost containment mechanism is adjusted.