Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what the process is for amending the allocation of free carbon allowances to operators when they change their inputs and outputs.

Free allocations to individual operators are managed dynamically via the Activity Level Changes (ALC) process to reflect significant increases and decreases in production accurately. Operators must submit a verified Activity Level Report to their UK ETS regulator annually. If the data shows an increase or decrease in activity of more than 15% from historic activity levels (calculated from the previous 2 years’ activity levels), free allocation of allowances will be recalculated.