Skip to main content
Guidance

UK ETS technical guidance: Free Allocation Regulation (FAR)

Technical guidance to assist UK ETS installation operators in complying with the requirements that relate to the Free Allocation Regulation (FAR).

Updates to this page

From:
Department for Energy Security and Net Zero
Published:
7 February 2025
Last updated:
3 November 2026
Show all updates

  1. Guidance related to the 2025 baseline data collection has been removed as it no longer applies.

  2. UKETS12A FAR: Completing the second stage of the free allocation application added, UKETS11 FAR and UKETS13 FAR updated.

  3. Added link to UK ETS Authority response to FAR consultation.

  4. Updated 'UK ETS17' as the previous version stated that the relevant year when allocation would be reduced is 2026 – this was incorrect, and the relevant year is 2027 according to Article 16(5) of the FAR.

  5. Added UKETS17 FAR: Waste gases and process emissions sub-installations.

  6. Added UKETS15 FAR: Cross-boundary heat flows and UKETS18 FAR: Sector specific guidance.

  7. Baseline Data Report and Verification Report templates updated and improved. Where possible participants should use the updated versions, but earlier versions will be accepted.

  8. Added UKETS11 FAR: Determining allocation at the installation level and UKETS14 FAR/VR - Verification of FAR baseline data reports, annual activity level data, and validation of MMPs.

  9. First published.

Documents

UK ETS 11 FAR: Determining allocation at the installation level

PDF, 1.4 MB, 74 pages

UK ETS 13 FAR: Monitoring and reporting in relation to the free allocation rules

PDF, 2.22 MB, 117 pages

UK ETS 14 FAR/VR: Verification of FAR baseline data reports, annual activity level data, and validation of MMPs

PDF, 1.05 MB, 64 pages

UK ETS 15 FAR: Cross-boundary heat flows

PDF, 686 KB, 48 pages

This file may not be suitable for users of assistive technology.

Request an accessible format
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

UK ETS 16A FAR: Reporting on cessation of operations

PDF, 426 KB, 17 pages

UK ETS 17 FAR: Waste gases and process emissions sub-installations (updated 10 June 2025)

PDF, 1.35 MB, 39 pages

This file may not be suitable for users of assistive technology.

Request an accessible format
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

UK ETS 18 FAR: Sector specific guidance

PDF, 2.45 MB, 192 pages

This file may not be suitable for users of assistive technology.

Request an accessible format
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

These guidance documents are for operators and explain the different elements of free allocation applications and calculations:

  • UK ETS 11 FAR: Determining allocation at the installation level explains how the allocation methodology is applied at the installation level, including the impact of the provisions designed to address the exposure to a significant risk of carbon leakage. It describes the different types of sub-installation defined in the methodology and the approach for determining the allocation for each one
  • UK ETS 13 FAR: Monitoring and reporting in relation to the free allocation rules explains the requirements for monitoring and reporting all data required for the free allocation of UK allowances and the Baseline Data Collection
  • UK ETS 14 FAR: Verification of FAR baseline data reports, annual activity level data, and validation of MMPs provides guidance on the verification of data relevant to the free allocation of allowances (baseline data and activity level data) as well as the accreditation of verifiers that conduct verification activities under the UK ETS.
  • UK ETS 15 FAR: Cross-boundary heat flows explains the allocation of allowances for heat flows across an installation boundary where the heat is defined as measurable heat. The treatment of heat imports and exports to and from UK ETS installations, non-UK ETS installations and district heating networks is described
  • UK ETS 16A FAR: Reporting on cessation of operations provides guidance to operators for when an installation or sub-installation has ceased operation, the impact on permit surrender and free allocation and the circumstances in which a decarbonisation exemption may apply.
  • UK ETS 17 FAR: Waste gases and process emissions sub-installations provides guidance on free allocation to installations engaged in the production and consumption of waste gases and the associated allocation methods, with a focus on process emissions sub-installations
  • UK ETS 18 FAR: Sector specific guidance provides relevant information for each product referred to by the 52 product benchmarks

Sign up for emails or print this page

Related content