§ 20E — Awards of allowances

20E.—(1) The Minister must, in an award of allowances for any taxable facility, specify —(a)

the emissions years in respect of which the taxable facility is entitled to allowances; and

(b)

the methodology by which the amount of allowance for each such emissions year is to be calculated.[Act 37 of 2022 wef 01/01/2024]

(2) In devising the methodology for any emissions year, the Minister may —(a)

adopt or take into consideration any or any combination of the following sub-paragraphs (including any part thereof):(i)

the whole or any part (with or without modification) of any matter relevant to GHG emissions or intensity, or energy use or efficiency, including any internationally‑recognised benchmark;

(ii)

any other matter that the Minister considers appropriate for the purpose of incentivising the continued reduction in the GHG emissions of the taxable facility; and

(b)

provide for a maximum amount of allowance for any emissions year, determined —(i)

by prescribing that the tax chargeable for an emissions year (calculated based on the formula (A – C) × B in section 20C) must not, when divided by A for that emissions year, result in an amount that is less than the amount specified by the Minister in the award for this purpose; or

(ii)

in any other manner that the Minister considers appropriate to incentivise the continued reduction in GHG emissions of the taxable facility.[Act 37 of 2022 wef 01/01/2024]

(3) For the purposes of subsection (2), the Minister may devise different methodologies for —(a)

different taxable facilities;

(b)

different classes of taxable facilities;

(c)

different emissions years (including with respect to the same taxable facility); or

(d)

different circumstances.[Act 37 of 2022 wef 01/01/2024]

(4) The Minister may at any time, in respect of any emissions year for which a taxable facility is entitled to an allowance under an award of allowances, amend the award of allowances by —(a)

modifying the methodology specified for the emissions year; or

(b)

substituting some other methodology for the emissions year,

in any circumstances that the Minister thinks appropriate, including where the original methodology ceases to be internationally‑recognised, or ceases to be valid or applicable, or ceases to have or is reduced in its relevance, in relation to the registered person or the business for which the taxable facility is used.

[Act 37 of 2022 wef 01/01/2024]

(5) The modified or substituted methodology must not be applied in respect of any emissions year for which the Agency has made an assessment of tax under Division 2 of Part 5, but may be so applied if the assessment is being revised under section 23.[Act 37 of 2022 wef 01/01/2024]

(6) The Minister must, in respect of each emissions year mentioned in subsection (1)(a), determine the amount of the allowance for that emissions year in accordance with the methodology mentioned in subsection (1)(b) for that emissions year. [Act 37 of 2022 wef 01/01/2024]

—(1) The Minister must, in an award of allowances for any taxable facility, specify —(a)

the emissions years in respect of which the taxable facility is entitled to allowances; and

(b)

the methodology by which the amount of allowance for each such emissions year is to be calculated.[Act 37 of 2022 wef 01/01/2024]

(2) In devising the methodology for any emissions year, the Minister may —(a)

adopt or take into consideration any or any combination of the following sub-paragraphs (including any part thereof):(i)

the whole or any part (with or without modification) of any matter relevant to GHG emissions or intensity, or energy use or efficiency, including any internationally‑recognised benchmark;

(ii)

any other matter that the Minister considers appropriate for the purpose of incentivising the continued reduction in the GHG emissions of the taxable facility; and

(b)

provide for a maximum amount of allowance for any emissions year, determined —(i)

by prescribing that the tax chargeable for an emissions year (calculated based on the formula (A – C) × B in section 20C) must not, when divided by A for that emissions year, result in an amount that is less than the amount specified by the Minister in the award for this purpose; or

(ii)

in any other manner that the Minister considers appropriate to incentivise the continued reduction in GHG emissions of the taxable facility.[Act 37 of 2022 wef 01/01/2024]

(3) For the purposes of subsection (2), the Minister may devise different methodologies for —(a)

different taxable facilities;

(b)

different classes of taxable facilities;

(c)

different emissions years (including with respect to the same taxable facility); or

(d)

different circumstances.[Act 37 of 2022 wef 01/01/2024]

(4) The Minister may at any time, in respect of any emissions year for which a taxable facility is entitled to an allowance under an award of allowances, amend the award of allowances by —(a)

modifying the methodology specified for the emissions year; or

(b)

substituting some other methodology for the emissions year,

in any circumstances that the Minister thinks appropriate, including where the original methodology ceases to be internationally‑recognised, or ceases to be valid or applicable, or ceases to have or is reduced in its relevance, in relation to the registered person or the business for which the taxable facility is used.

[Act 37 of 2022 wef 01/01/2024]

(5) The modified or substituted methodology must not be applied in respect of any emissions year for which the Agency has made an assessment of tax under Division 2 of Part 5, but may be so applied if the assessment is being revised under section 23.[Act 37 of 2022 wef 01/01/2024]

(6) The Minister must, in respect of each emissions year mentioned in subsection (1)(a), determine the amount of the allowance for that emissions year in accordance with the methodology mentioned in subsection (1)(b) for that emissions year. [Act 37 of 2022 wef 01/01/2024]