S.L. 643.3 Art. 11Issuing of allowances allocatedtoaircraft operators and validity of allowances.

(1) The Authority shall, by 30 June of each year, issue the quantity of free allowances that are to be allocated for that year to each aircraft operator as determined in accordance with paragraph (1a) of

Article 3d of Directive 2003/87/EC.

(1a) The Authority shall issue the quantity of free allowances that are to be allocated for that year to an aircraft operator in accordance with regulation 4.

(2) Each aircraft operator shall be issued Chapter II allowances in accordance with sub-regulation (1) in the aircraft operator’s holding account held in the Union registry.

(3) Chapter II allowances issued in accordance with sub-regulation (1) in respect of the period beginning 1st January, 2013 and subsequent periods shall be valid indefinitely. Allowances issued as from 1st January, 2021 in a ten-year period shall be valid for emissions from the first year of that period onwards.

(4) Where, an aircraft operator ceases performing an aviation activity listed in Schedule 1, the Authority shall inform the national registry administrator. The national registry administrator shall ensure that no further free Chapter II allowances are issued to that aircraft operator for the first year after the year when the aircraft operator ceases performing an aviation activity listed in Schedule 1 and for any subsequent year when the aircraft operator does not perform an aviation activity listed in Schedule 1. Where, an aircraft operator starts performing again an aviation activity listed in Schedule 1, the Authority shall inform the national registry administrator. The national registry administrator shall ensure that free Chapter II allowances determined in accordance with regulation 4 or 5 are issued for the first year after the year when the aircraft operator starts performing again an aviation activity listed in Schedule 1 and for any subsequent year when the aircraft operator performs an aviation activity listed in Schedule 1.