The government has published plans for a UK-wide replacement for the EU Emissions Trading System (ETS).
On 1 June, it said that the UK ETS – designed jointly by the UK, Scottish and Welsh governments, along with the Northern Ireland executive – would “go further in tackling climate change”. It would replace the EU ETS at the end of this year, operating as either a linked or standalone system dependent on the outcome of ongoing UK-EU trade negotiations. In a bid to “show greater climate ambition from the start”, the government has pledged to reduce the existing emissions cap by 5%.
Once the new system is operational, the government will look to amend the cap again, ensuring it is in line with the UK’s net zero target.
Energy Minister, Kwasi Kwarteng, said: “The UK is a world-leader in tackling climate change, and thanks to the opportunities arising as we exit the transition period, we are now able to go even further, faster. This new scheme will provide a smooth transition for businesses while reducing our contribution to climate change, crucial as we work towards net zero emissions by 2050.”