Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, whether there is an obligation on an installation to report to his Department on the (a) retention and (b) sale of free carbon allowances.

Free allowances are provided to qualifying operators to mitigate the risk of carbon leakage. These can be used to meet compliance obligations under the UK Emissions Trading Scheme, sold on the secondary market to other participants or held by operators in their accounts. There is no legal obligation for installation operators to report on their retention or sale of free carbon allowances.

All transactions under the UK ETS are recorded in the UK Emissions Trading Registry.