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)
A debate on the Wellbeing Economy approach to meeting climate goals is scheduled to take place on Tuesday 30 November 2021, at 4.30pm, in Westminster Hall. The debate will be opened by Caroline Lucas.
There will be a debate in Westminster Hall on Empowering community energy schemes on 30 November 2021 from 2:30pm until 4:00pm. Wera Hobhouse MP will open this debate.
A Westminster Hall debate on energy intensive industries is due to take place on Wednesday 24 November 2021 at 9.30am. The debate will be led by Jack Brereton MP.
