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EMISSIONS: UK Revises Carbon Rules, Requiring Firms to Return Unused Permits.

EMISSIONS
CEEMEAEnergy BulletsBulletPower BulletsUKCommodities

The UK is revising its carbon emissions trading rules, requiring companies that permanently cease operations to return unused free permits, while also introducing new reporting requirements and expanding the carbon market to the maritime sector by 2026, the government said.

  • Regulators will recalculate how many free allowances should have been issued based on the final year of activity.
  • These companies must report on their activities in the year after they stop operating.
  • If the free allowances issued at the start of the final year exceed actual emissions, the company will need to return the excess permits or have its future allocations adjusted.
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The UK is revising its carbon emissions trading rules, requiring companies that permanently cease operations to return unused free permits, while also introducing new reporting requirements and expanding the carbon market to the maritime sector by 2026, the government said.

  • Regulators will recalculate how many free allowances should have been issued based on the final year of activity.
  • These companies must report on their activities in the year after they stop operating.
  • If the free allowances issued at the start of the final year exceed actual emissions, the company will need to return the excess permits or have its future allocations adjusted.