Developing the UK Emissions Trading Scheme (UK ETS)

Why we are consulting The UK ETS Authority (UK Government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland, hereinafter ‘the Authority’) are seeking input on a number of proposals to develop the UK Emissions Trading Scheme (UK ETS). We have committed to implementing a net zero consistent cap for the scheme, reviewing Free Allocation policy and expanding the use of emissions trading across the economy. This consultation seeks views on our proposals to meet these commitments. It proposes options for a net zero consistent cap, changes to Free Allocation policy in the context of a net zero consistent cap and options for the expansion of the UK ETS to cover waste and maritime sectors. It also includes further proposals which aim to increase the ambition of the scheme and improve its operational effectiveness. Additionally, this consultation calls for evidence on a number of potent