Guidance

Participating in the UK Emissions Trading Scheme (UK ETS)

This guidance explains who the UK Emissions Trading Scheme (UK ETS) applies to and what is required of businesses that are covered.

Documents

Details

A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021. The 4 governments of the UK have established the scheme to increase the climate ambition of the UK’s carbon pricing policy, whilst also protecting the competitiveness of UK businesses.

This guidance explains who the UK ETS applies to and what is required of businesses that are covered.

Published 17 December 2020
Last updated 12 July 2021 + show all updates
  1. Guidance updated to provide additional clarity to the calculation of the CCM trigger price. We have also updated the CCM trigger price for October 2021 and the Actual December Futures average price for June.

  2. We have published the Aviation Allocation Table which contains a list of each aircraft operator’s free allocation entitlement for the 2021 to 2025 allocation period.

  3. We have provided more guidance on the Cost Containment Measure (CCM), the September CCM trigger price and the average May UK allowance price.

  4. We aim to allocate allowances for the 2021 scheme year to operator holding accounts in the UK ETS Registry by 28 May 2021.

  5. We have published the Allocation Table, which contains a list of each installation's free allocation for the 2021 to 2025 allocation period.

  6. Added further information on how free allocation for operators of installations will work. We aim to publish an Allocation Table containing each installation's free allocation by 14 May 2021. If you are included in the table, you must submit a verified Activity Level Data Report by 30 June 2021. From 2022, free allocation will be allocated on or before 28 February of each calendar year.

  7. Added further information on how auctions operate, including who is eligible to bid in auctions.

  8. Added timetable for onboarding UK Emissions Trading Registry accounts.

  9. The calendar for UK ETS auctions in 2021 has been published by auction platform provider ICE. We have included a link to the calendar from this guidance.

  10. Section on auctioning updated to include information on the Auction Reserve Price, the Cost Containment Mechanism and the Auctioning Regulations.

  11. First published.