sch. para. 6
- Submit proof of incorporation when applying to bid for emissions allowances
UK Statutory Instrument
2021
United Kingdom
The Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021
At a glance
What's here
25 compliance obligations
Who this Act binds
Plus 9 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Auctioned products
- Follow bidding and payment rules at UK ETS auctions
Auction clearing price and resolution of tied bids
Other duties (1) — Crown / regulator
- Auction platform must sort bids and handle tied bids randomly Statutory regulator
Auction clearing price
- Appointed auction platform must set methodology for auction clearing price threshold
Calendar for individual auctions
Other duties (1) — Crown / regulator
- Auctioneer and auction platform must publish annual auction calendar by 15 July Statutory regulator
Annual volumes of allowances
Other duties (1) — Crown / regulator
- Auctioneer must adjust auction volumes when aviation free allocation changes Statutory regulator
Adjustments of the auction calendar
Other duties (1) — Crown / regulator
- Auction platform must consult FCA and auctioneer before making unprovided modifications Statutory regulator
Means of access
- Provide non-discriminatory remote access to auctions via secure internet
Training and helpline
Other duties (1) — Crown / regulator
- Provide online auction training and telephone/email helpline Statutory regulator
Persons eligible to apply for admission to bid
- Ensure clients are eligible to bid in carbon auctions
Refusal, revocation or suspension of admission
Other duties (1) — Crown / regulator
- The auction platform must refuse, revoke or suspend bidders who fail eligibility or break rules Statutory regulator
The auctioneer's functions
Other duties (1) — Crown / regulator
- Auctioneer must auction allowances and pay proceeds to government Crown / Minister / Government department
Functions of the auction platform
- Auction platform must run auctions, manage payments, prevent abuse, and plan an exit
Appointment requirements applicable to any auction platform
- Obtain FCA authorisation and organise a secondary market if appointed as auction platform
Obligation to report transactions
- Report all auction transactions to the FCA within one trading day
Payment by successful bidders and transfer of proceeds
- Pay for allowances won at auction by the delivery deadline
Collateral given by the bidder
- Give collateral before bidding in emissions trading auction
Monitoring of auctions
Other duties (1) — Crown / regulator
- Auctioneer must monitor auction platform performance and publish annual reports Statutory regulator
Monitoring the relationship with bidders
- Monitor bidders and keep records throughout the auction relationship
Notification of market abuse
- Set up systems to prevent, detect and report market abuse in auctions
Publication
- Publish auction information on dedicated website
Announcement and notification of the auction results
- Announce auction results and notify successful bidders within strict time limits
Protection of confidential information
- Protect confidential information obtained in auction operations
Language regime
- Communicate in English when bidding in UK ETS auctions
Right of appeal
Other duties (1) — Crown / regulator
- Provide a fair complaints and appeals process for bidders Statutory regulator
Browse 42 other sections — procedural / definitional / commencement
Citation and commencement
Proof of eligibility pursuant to regulation 16(1) or (2).
Interpretation
The applicant's name, address, telephone and electronic mail address.
Meaning of UK ETS authority
The account identifier of the applicant's nominated holding account.
Full details of the applicant's nominated bank account.
Submission and withdrawal of bids
The name, address, telephone and the electronic mail address of...
For legal persons, proof of: (a) their incorporation stating—
For legal persons or unincorporated associations or other legal arrangements,...
For natural persons, proof of their identity, by means of...
For operators, their permit (within the meaning of article 4...
For aircraft operators, the emissions monitoring plan issued under article...
Circumstances preventing the conduct of auctions
Such information as is required to carry out the customer...
Cost containment mechanism
The applicant's latest audited annual report and accounts including the...
Persons who may submit bids directly in an auction
The United Kingdom VAT registration number, if any, and, where...
A statement that, to the best of the applicant's knowledge,...
Proof of compliance with the requirements of regulation 17(2)(g).
Proof that the applicant satisfies the requirements of regulation 17(3)....
Requirements for admission to bid
A statement that the applicant has the necessary legal capacity...
Submission and processing of applications for admission to bid
A statement that to the best of the applicant's knowledge...
Appointment of the auctioneer
Appointment of the auction platform
Appointment requirements applicable to the auctioneer
Consequences of late or non-payment
Transfer of the auctioned allowances
Delivering the auctioned allowances
Late delivery of the auctioned allowances
Collateral given by the auctioneer
Structure and level of fees
Costs of the auction process
Notification of money laundering, terrorist financing or other criminal activity
Maximum bid-size and other remedial measures
Market conduct rules or any other contractual arrangements
Conduct rules for other persons authorised to bid on behalf of others
Correction of errors
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