The UK left the EU Emissions Trading Scheme (EU ETS) at the end of the Brexit transition period and has implemented a UK Emissions Trading Scheme (UK ETS) to replace it.
The UK Emissions Trading Scheme (185 KB , PDF)
The Four administrations announced in June 2020 that they would be introducing a UK ETS to replace the EU ETS after the UK left the EU. This was following a consultation and recommendations from the Climate Change Committee.
The UK government and the devolved administrations collectively constitute the UK ETS Authority to oversee the UK ETS. The UK ETS, a cap and trade emissions scheme, is of similar design and has similar aims to the EU ETS. However, it will have a 5% reduction in the emissions cap that would have been set under that scheme. In addition, the aim is to align it with the UK 2050 net zero target by 2024 at the latest. Further details of the UK ETS were provided in the Industrial Decarbonisation Strategy published in March 2021. The Government also announced the first auction of allowances would take place in May 2021.
The UK and EU Trade and Cooperation Agreement committed both parties to explore options for linking their schemes but does not go further.
The UK Emissions Trading Scheme (185 KB , PDF)
On Thursday 21st October, MPs will hold a general debate on the UK’s Climate Progress: the Committee on Climate Change’s 2021 Progress Report in Westminster Hall. This page provides background to the report and links to further information.
Small Island Developing States are considered some of the most vulnerable in the world to changes in the climate. This briefing discusses potential support.
The price of energy has dramatically increased in recent months; both in the UK and globally. The prices are causing widespread concern and knock-on impacts for both domestic and commercial energy consumers. This paper sets out the causes of the price rise, impacts in the UK, and possible implications for UK energy policy.
