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 05 June 2007
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Phase 1: New Entrants and Closures

An important element of the EU ETS is how new entrants to the scheme should be treated and what happens to an installation's allocation when it ceases operation. 

For Phase I, the Government has provided a New Entrant Reserve (NER) - a store of allowances available for installations that either commence or extend operations during the phase.  Installations that close can retain their allowances for the year in which closure occurs, but not for the following years of the phase. 

Guidance and further information on Phase I NER issues

Guidance about how the NER operates can be found in the 'Related Documents' section of this page. 

The rules for eligibility to the NER and closure rules can be found in Appendix C to the Phase I National Allocation Plan, a copy of which is in the 'Related Documents' section of this page.

Operators must apply to their relevant regulator for allowances from the NER.  For some types of application, verification will be required.  Guidance on which applications require verification and the process for verification can be found in the 'Related Documents' section of this page. 

Calculating new entrant allowances

A copy of the spreadsheet for calculating new entrant allowances (for all sectors except offshore), together with other technical material relating to it, can be found in the 'Related Documents' section of this page.  The final spreadsheet for the calculation of new entrant allowances for offshore installations can also be found under 'Related Documents'.

Further information

To make an application as a new entrant or a closure, please contact your relevant regulator for more information:

  • for installations in England and Wales, the Environment Agency
  • for installations in Scotland, the Scottish Environment Protection Agency
  • for installations in Northern Ireland, the Department of the Environment
  • for offshore installations, the Energy Resources and Development Unit of the DTI

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