As part of the Phase II National Allocation Plan (NAP), the UK set aside a number of allowances to be allocated free to installations that commence or extend the operation of an Annex I activity, after 31 December 2007 but before the end of 2012.
The total quantity of allowances set aside for new entrants was determined by looking at the probability of new entrants coming from individual sectors, and their investment lead times. The allowances were taken from sector caps that have been calculated to include growth.
The UK New Entrant Reserve (NER) contains additional allowances to provide Phase II allocations for new entrants that started towards the end of Phase I, and part of the NER was earmarked for use by Good Quality Combined Heat and Power (GQCHP) new entrants. New entrants are asked to provide input data when making a new entrant application so regulators can run a standardised spreadsheet derived from best practice benchmarks.
Please submit applications to the Phase II New Entrant Reserve to the Environment Agency. You can find details of how to apply, along with the current status of the queue, on the
Environment Agency website.
For Phase II the UK has also legislated to deal with installations closing, both temporarily and permanently, during the phase. Further details of these rules can be found in Appendix D of the Phase II UK NAP.
Supporting information
Please note: Some of these documents pre-date the formation of DECC, when BERR (now BIS), Defra and other Departments had responsibility for the EU ETS.