Threads / UK Emissions Trading Scheme Policy / Extending the UK Emissions Trading Scheme cap beyond 2030
Consultation Outcome Published 4 Dec 2025 Department for Energy Security and Net Zero ↗ View on GOV.UK

Extending the UK Emissions Trading Scheme cap beyond 2030

We're seeking views on extending the UK Emissions Trading Scheme beyond the end of Phase I.

Opened 12 Feb 2025
Closed 9 Apr 2025
▤ Verbatim text from source document

The UK Emissions Trading Scheme (ETS) Authority is seeking input on proposals for extending the UK ETS beyond the end of Phase I at midnight on 31 December 2030. This fulfils the commitment made in December 2023 within the UK Emissions Trading Scheme long-term pathway to consult on the extension of the Scheme.

This consultation proposes options and seeks views on:

  • extending the UK ETS into a second phase from 1 January 2031 onward
  • the length of a post-2030 Phase II
  • whether to allow banking of emissions allowances (UKAs) between Phase I and a post-2030 Phase II of the Scheme

The consultation is aimed at anyone with an interest, in particular:

  • ETS participants
  • wider industry
  • academia
  • non-governmental organisations (NGOs)

Read the DESNZ consultation privacy notice.