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UK Government Confirms UK Emissions Trading Scheme to Replace EU ETS


UK ETS – A new carbon trading scheme outside the EU.

The UK Government and the devolved administrations for Scotland and Wales have announced that a new UK Emissions Trading Scheme (ETS) will replace the UK’s participation in the EU ETS from 1st January 2021.

In a communication from the Environment Agency’s Emissions Trading Team, Envantage learned this morning that the new scheme has been established to increase the climate ambition of the UK’s carbon pricing policy, whilst protecting the competitiveness of UK business.


The UK ETS will “apply to energy intensive industries, the power generation sector and aviation, ensuring continuity of coverage with the EU ETS.

If your operation falls under EU ETS now, new permits will be issued for the new UK ETS in two stages, which are planned to be completed in early 2021. This will be accompanied by guidance, with the Aviation sector expecting more information in the coming days, and a How To Comply guide being published in early 2021 alongside more detailed information for sites which may be able to opt out etc.

An overview of this, alongside other initiatives announced by UK Government following the Climate Ambition Summit this weekend, can be seen by following this link.

Unsure of the impacts on your business?

If you would like more details or to discuss the effect of these changes on your operations, get in touch. Call 0161 448 7722, email or get in touch.



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