On 21 April 2021, there was published on the legislation.gov.uk website The Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 together with an explanatory memorandum. The statutory instrument is part of the legislative effort to establish a United Kingdom (UK) Emissions Trading Scheme (ETS) and accompanying emission allowance market.
The statutory instrument updates existing UK provisions to reflect that the UK is no longer part of the EU ETS but has now established the UK ETS. The holding of a UK auction of emissions allowances will, if approved by Parliament, be governed by the Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021. The statutory instrument is specifically concerned with amendments to financial services law that govern access to a UK ETS auction platform, what is required of an auction platform, and the auctioning and trading of emissions allowances as financial instruments. In particular, the statutory instrument ensures the appropriate regulatory treatment of UK emission allowances, which includes replacing references to EU emissions allowances with references to UK emissions allowances or adding references to UK emissions allowances to existing references to EU emissions allowances (such as in relation to emissions allowances listed in paragraph 11 of Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001).