UK is set to launch its own ETS after leaving the EU
Concerns grow ahead of UK carbon market launch
The UK is set to start its equivalent of the EU ETS on 19 May, but it may take some time for market participants to adjust
The UK emissions trading system (UK ETS) will begin trading on 19 May, when the government holds the first auction of UK allowances (UKAs). Futures trading will begin on the same day, with the Ice Futures Europe exchange preparing to list contracts out to December 2023. The government announcement in early March brought to an end many weeks of uncertainty for market participants. However, it is still not clear at what price UKAs will trade. Some traders see the risk of an early price spike as compliance buyers—particularly utilities—rush to build portfolios to hedge their forward power sales, while others suggest activity will be modest at the start. “It will take time for the UK marke
Also in this section
9 January 2026
A shift in perspective is needed on the carbon challenge, the success of which will determine the speed and extent of emissions cuts and how industries adapt to the new environment
2 January 2026
This year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
23 December 2025
Legislative reform in Germany sets the stage for commercial carbon capture and transport at a national level, while the UK has already seen financial close on major CCS clusters
15 December 2025
Net zero is not the problem for the UK’s power system. The real issue is with an outdated market design in desperate need of modernisation
