Reporting of indirect cost compensation payments made to industry in the UK in 2024 to 2025
Published 24 August 2026
© Crown copyright 2026
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This publication is available at https://www.gov.uk/government/publications/report-on-indirect-compensation-payments-made-to-industry-in-the-uk-2024-to-2025/reporting-of-indirect-cost-compensation-payments-made-to-industry-in-the-uk-in-2024-to-2025
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In line with Section 48, Paragraph 172 of the SCA 2022 Explanatory Notes, the Department for Business and Trade (DBT) has set out the total amount of compensation paid as a result of indirect costs resulting from the UK Emissions Trading Scheme (ETS) in 2024 to 2025. This is in line with reporting of a legacy schemes that were made under EU state aid rules before the end of the implementation period on 31 December 2020 (including schemes that were set up before the UK’s accession to the EU and were considered ‘existing aid’ for EU state aid purposes).
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As the total compensation is less than 25% of UK ETS auction revenue in the relevant year, this does not trigger any additional reporting requirement.
UK ETS Indirect Cost Compensation awarded in 2024 to 2025 (£ Sterling)
| Sector | Number of businesses | UK ETS compensation |
|---|---|---|
| Iron and steel | 10 | 42.0 million |
| Chemicals | 29 | 35.7 million |
| Paper | 35 | 50.3 million |
| Non-ferrous metals | 23 | 6.3 million |
| Other | 18 | 12.5 million |