Consultation outcome

The future of UK carbon pricing

This consultation has concluded

Download the full outcome

The future of UK carbon pricing - UK government and devolved administrations' response

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The future of UK carbon pricing - impact assessment

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Letter to Lord Deben responding to advice on standalone UK ETS (June 2020)

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Letter to Lord Deben requesting advice on standalone UK ETS (March 2020)

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Phase IV impact assessment

Detail of outcome

The UK government and devolved administrations (DAs) consulted in May 2019 on the future of carbon pricing in the UK. Our response sets out our decisions on the design and operation of a UK Emissions Trading System (ETS).

Chapter 1 sets out the proposals for the main design features of a UK ETS, primarily related to stationary installations. These proposals broadly mirror the approach laid out in the consultation. We have adopted the majority of proposals outlined in the consultation.

Chapter 2 covers the operation of the system. These proposals broadly mirrored the operational approach in phase IV of the EU ETS, with the exception of proposals on Monitoring, Reporting & Verification (MRV) and auctioning, where we proposed some changes.

Chapter 3 sets out proposals on aviation to ensure the sector continues to make a proportionate and cost-effective contribution to achieving the UK’s high climate ambition. These proposals broadly mirror the approach to aviation outlined in the consultation document.

Included is our impact assessment of the design of a standalone UK ETS, and our response to the most recent Committee on Climate Change advice on a standalone UK ETS.

The response to Chapter 4 of the consultation was published in October 2019. All policy proposals put forward in chapter 4 of the consultation, with the exception of regulatory responsibility for carbon capture and storage across all devolved administrations, will be implemented into domestic legislation.

NI electricity generators shall remain in the EU ETS by virtue of the Ireland/Northern Ireland Protocol.

Detail of feedback received

This consultation received 149 responses, many of which were from a variety of industry sectors, including:

  • 17 from the power sector
  • 8 from cement and minerals
  • 7 from chemicals
  • 6 from aviation

We also received responses from:

  • other sectors
  • trade bodies
  • non-governmental organisations (NGOs)
  • academia

Original consultation

Summary

We're seeking views on the UK government’s and the devolved administrations’ approach to UK carbon pricing following EU exit.

This consultation ran from
to

Consultation description

This consultation sets out the UK government’s and the devolved administrations’ approach to UK carbon pricing once we have left the EU, and seeks stakeholders’ views on the design of a future scheme.

This consultation is of particular interest to:

  • individual companies
  • representatives of industrial, power and aviation sectors with obligations under the EU ETS
  • environmental groups

This consultation is not limited to these stakeholders; any organisation or individual is welcome to respond.

8 July 2019

The original version of the consultation document contained a duplicated question (Q79) and a duplicated question number (Q33), which means that question numbers beyond that were misnumbered. We have now updated the document.

The online version is correct and we encourage you to use that to respond as the most efficient and effective option.

This is a joint consultation of the UK government, the Scottish Government, the Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland.

Documents

The future of UK carbon pricing

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Phase IV impact assessment

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Letter commissioning Committee on Climate Change advice on UK ETS

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Assessment of costs to UK participants of compliance with Phase III of the EU emissions trading system

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Published 2 May 2019
Last updated 1 June 2020 + show all updates
  1. Government response to Chapters 1, 2 and 3 published.

  2. Government response to Chapter 4 published.

  3. Further Consultation workshop booking links added.

  4. Consultation workshops: details added.

  5. First published.