2027 Free Allocation.

The UK ETS Regulators are finalising their review of the Stage 2 Baseline Data Reports  meaning 2027 free allocation figures will be available shortly.

In anticipation of the 2027-2030 allocation period, the Regulators are currently populating Stage 2 Baseline Data Reports submissions with preliminary 2027 free allocation figures. These updated BDR submissions are expected to be available to operators on METS by 11 September 2026.

Operators should review the updated Baseline Data Reports as soon as it is available, checking the preliminary 2027 free allocation figure and any sub-installation cessations are correct, and raise any errors with the Regulator without delay. The Regulators are due to submit Baseline Data Reports to the UK ETS Authority by 30 September 2026.

The free allocation table is expected before 1 January 2027, with 2027 allowances expected to be distributed by 28 February 2027. As always, figures are subject to change following review of verified Activity Level Reports submitted by 31 March 2027.

For 2028-2030, allowances are expected to be confirmed once the Authority has completed its assessment of updated EU benchmark values, meaning 2028-2030 free allocation may not be included in the free allocation table released later this year.

Operator to do list

✔ Download updated Baseline Data Report from METS.

✔ Review 2027 free allocation figure and sub-installation cessations (where applicable).

✔ Inform the appropriate Regulator of any errors as soon as possible.

 

Here at Swan Energy, our consultants will complete this review on behalf of all our clients who receive free allocation. Get in touch with the team if you want to discuss this update further. 

 

Rebecca Scarratt

Carbon Consultant

Rebecca Scarratt

Carbon Consultant

Rebecca joined the Swan Energy team in 2021, after graduating from the University of Hull with a MSc in Renewable Energy.

In her role at Swan Energy, Rebecca supports the consultancy work the team does with clients across the UK. She has gained experience in the various compliance services we offer. Within the core team, Rebecca is account manager for over 40 UK ETS installations across the healthcare, food manufacturing and energy industry sectors.

Rebecca has managed SECR reporting and ESOS energy auditing for a selection of food manufacturing and retail clients. She has also produced a TCFD report for a large gas and oil company and managed CHPQA applications for NHS clients.

Click here to watch Rebecca’s introduction video.