Developing the UK ETS: initial UK ETS Authority response covering proposals to be implemented by 2023

The UK ETS Authority – made up of the UK Government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland – sought stakeholder views on proposals to develop the UK ETS which operates across England, Scotland, Wales and Northern Ireland between 25th March and 17 June 2022.

The consultation was called Developing the UK emissions Trading Scheme (UK ETS), details can be found here.

Detail of outcome

This consultation included a small number of proposals that require implementation via legislation ahead of the 2023 scheme year, so the UK ETS Authority are publishing an early response to set out final positions on these particular proposals before they take effect.

The UK ETS Authority will publish a full response to the remaining proposals in the consultation at a later date, including on aligning the UK ETS cap with net zero.

This early response outlines the feedback received and the Authority decisions on the following proposals:

  • aviation
    • the inclusion of flights from the UK to Switzerland in the UK ETS from January 2023
    • the permitting of virtual site visits for aviation verifiers in situations other than circumstances that are serious, extraordinary and unforeseeable
    • updating the references in UK ETS legislation to the Renewable Transport Fuel Obligation (RTFO) sustainability criteria that are relevant to the eligibility of sustainable aviation fuels
  • amendment to the Activity Level Changes Regulation due to the 2020 COVID year
  • operational amendments to the UK ETS included in Chapter 9 of the consultation, including minor permitting, monitoring, reporting and verification (PMRV) amendments, and a window for hospitals and small emitters to re-enter the main scheme.

Detail of feedback received

The UK ETS Authority received 90 responses to the proposals covered in this government response, from a variety of stakeholders including:

  • 18 trade associations
  • 14 aviation operators
  • 8 manufacturing organisations
  • 6 chemical organisations
  • 6 oil and gas organisations
  • organisations in the food and drink, and steel sectors
  • local authorities
  • consultancies, think tanks and NGOs
  • other sectors

Download the full outcome

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